Cover
Cover | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Cover [Abstract] | ||
Document Type | S-1/A | |
Amendment Flag | true | |
Amendment Description | Amendment No.3 | |
Entity Registrant Name | AIXIN LIFE INTERNATIONAL, INC. | |
Entity Central Index Key | 0000835662 | |
Entity Primary SIC Number | 5149 | |
Entity Tax Identification Number | 84-1085935 | |
Entity Incorporation, State or Country Code | CO | CO |
Entity Address, Address Line One | Hongxing International Business Building 2, 14th FL | |
Entity Address, Address Line Two | No. 69 Qingyun South Ave. | |
Entity Address, Address Line Three | Jinjiang District | |
Entity Address, City or Town | Chengdu City | |
City Area Code | (86) | |
Local Phone Number | 313-6732526 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) |
Current assets | |||
Cash and equivalents | $ 5,298,503 | $ 8,556,642 | $ 7,676,689 |
Restricted cash | 80,303 | 44,211 | |
Accounts receivable, net | 196,376 | 45,923 | |
Other receivables and prepaid expenses | 162,640 | 143,281 | 32,323 |
Advances to suppliers | 137,362 | 162,969 | 155,686 |
Inventory, net | 857,754 | 233,454 | 45,535 |
Advances to related parties | 92,642 | 19,055 | 15,739 |
Total current assets | 6,825,580 | 9,205,535 | 7,925,972 |
Property and equipment, net | 1,910,691 | 290,148 | 67,817 |
Intangible asset, net | 1,393 | 1,940 | |
Goodwill, net | |||
Deferred tax asset | 15,522 | 18,795 | |
Security deposit | 84,347 | 94,153 | |
Operating lease right-of-use assets | 1,173,616 | 2,049,775 | 100,029 |
Total assets | 10,011,149 | 11,660,346 | 8,093,818 |
Current liabilities | |||
Accounts payable | 507,993 | 406,163 | 39,122 |
Accounts payable-related party | 160,911 | ||
Unearned revenue | 153,163 | 171,408 | |
Taxes payable | 55,942 | 232,637 | 283,495 |
Accrued liabilities and other payables | 5,903,738 | 752,400 | 514,239 |
Government grant | 921,473 | ||
Loan from third parties | 84,347 | 94,153 | |
Operating lease liabilities | 772,632 | 848,230 | 70,780 |
Advance from related parties | 726,650 | 1,947,154 | 264,850 |
Total current liabilities | 9,286,849 | 4,452,145 | 1,172,486 |
Operating lease liabilities - non-current | 382,152 | 1,138,710 | 29,250 |
Total liabilities | 9,669,001 | 5,590,855 | 1,201,736 |
Stockholders’ equity | |||
Undesignated preferred stock, $0.001 par value, 20,000,000 shares authorized, none issued and outstanding | |||
Common stock, par value $0.00001 per share, 500,000,000 shares authorized; 49,999,891 shares issued and outstanding as of September 30, 2022 and December 31, 2021 | 500 | 500 | 500 |
Additional paid in capital | 14,365,448 | 14,086,793 | 11,115,765 |
Statutory reserve | 151,988 | 151,988 | 151,988 |
Accumulated deficit | (14,734,474) | (8,880,613) | (4,964,711) |
Accumulated other comprehensive income | 558,686 | 710,823 | 588,540 |
Total stockholders’ equity | 342,148 | 6,069,491 | 6,892,082 |
Total liabilities and stockholders’ equity | $ 10,011,149 | $ 11,660,346 | $ 8,093,818 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | |||
Undesignated preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 |
Undesignated preferred stock, shares authorized | 20,000,000 | 20,000,000 | 20,000,000 |
Undesignated preferred stock, shares issued | 0 | 0 | 0 |
Undesignated preferred stock, shares outstanding | 0 | 0 | 0 |
Common stock, par value | $ 0.00001 | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 | 500,000,000 |
Common stock, shares issued | 49,999,891 | 49,999,891 | 49,999,891 |
Common stock, shares outstanding | 49,999,891 | 49,999,891 | 49,999,891 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Total revenue, net | $ 672,786 | $ 812,910 | $ 1,512,351 | $ 2,363,836 | $ 3,066,233 | $ 2,451,055 |
Operating costs and expenses | ||||||
Cost of goods sold | 215,383 | 130,938 | 493,905 | 291,618 | 535,485 | 224,675 |
Hotel operating costs | 404,322 | 320,305 | 1,334,041 | 320,305 | 744,594 | |
Selling | 193,820 | 156,587 | 583,438 | 250,468 | 470,798 | 244,200 |
General and administrative | 232,642 | 187,820 | 752,113 | 607,741 | 1,033,830 | 802,556 |
Provision for bad debts | 67,638 | 17,884 | 115,495 | 17,884 | (63,076) | 13,624 |
Stock-based compensation | 92,885 | 92,885 | 278,655 | 278,655 | 371,540 | 371,540 |
Total operating costs and expenses | 1,206,690 | 906,419 | 3,557,647 | 1,766,671 | 3,093,171 | 1,656,595 |
(Loss) income from operations | (533,904) | (93,509) | (2,045,296) | 597,165 | (26,938) | 794,460 |
Non-operating income (expenses) | ||||||
Interest income | 1,024 | 599 | 3,636 | 3,088 | 4,113 | 537,580 |
Impairment loss | (3,823,770) | (3,823,770) | ||||
Other income | 12,134 | 22,067 | 41,789 | 22,228 | 63,064 | 28,924 |
Other expenses | (29,317) | (1,167) | (29,577) | (8,052) | (33,154) | (3,326) |
Total non-operating income (expenses), net | (3,839,929) | 21,499 | (3,807,922) | 17,264 | 34,023 | 563,178 |
(Loss) income before income tax | (4,373,833) | (72,010) | (5,853,218) | 614,429 | 7,085 | 1,357,638 |
Income tax expense (benefit) | (322) | 74,094 | 643 | 292,146 | 274,321 | 340,127 |
Net (loss) income | (4,373,511) | (146,104) | (5,853,861) | 322,283 | (267,236) | 1,017,511 |
Other comprehensive items | ||||||
Foreign currency translation (loss) gain | (139,053) | 6,638 | (152,137) | 83,762 | 122,283 | 437,059 |
Comprehensive (loss) income | $ (4,512,564) | $ (139,466) | $ (6,005,998) | $ 406,045 | $ (144,953) | $ 1,454,570 |
(Loss) income per share - basic and diluted | $ (0.087) | $ (0.003) | $ (0.117) | $ 0.006 | $ (0.005) | $ 0.016 |
Weighted average shares outstanding | 49,999,891 | 49,999,891 | 49,999,891 | 49,999,891 | 49,999,891 | 65,609,450 |
Product [Member] | ||||||
Total revenue, net | $ 503,062 | $ 204,593 | $ 888,690 | $ 457,838 | $ 742,624 | $ 580,712 |
Advertising [Member] | ||||||
Total revenue, net | 445,215 | 1,742,896 | 1,944,811 | 1,870,343 | ||
Room Revenue [Member] | ||||||
Total revenue, net | 71,562 | 68,559 | 166,278 | 68,559 | 114,086 | |
Food And Beverage Revenues [Member] | ||||||
Total revenue, net | 64,321 | 71,015 | 356,840 | 71,015 | 201,755 | |
Other [Member] | ||||||
Total revenue, net | $ 33,841 | $ 23,528 | $ 100,543 | $ 23,528 | $ 62,957 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Statutory Reserves [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Beginning balance at Dec. 31, 2019 | $ 850 | $ 10,743,875 | $ 11,721 | $ (5,841,955) | $ 151,481 | $ 5,065,972 |
Beginning balance, shares at Dec. 31, 2019 | 85,049,576 | |||||
Cancellation of shares | $ (350) | 350 | ||||
Cancellation of shares, shares | (35,049,685) | |||||
Statutory reserve | 140,267 | (140,267) | ||||
Stock-based compensation | 371,540 | 371,540 | ||||
Net income (loss) | 1,017,511 | 1,017,511 | ||||
Foreign currency translation | 437,059 | 437,059 | ||||
Foreign currency translation | 437,059 | |||||
Ending balance at Dec. 31, 2020 | $ 500 | 11,115,765 | 151,988 | (4,964,711) | 588,540 | 6,892,082 |
Ending balance, shares at Dec. 31, 2020 | 49,999,891 | |||||
Stock-based compensation | 92,885 | 92,885 | ||||
Net income (loss) | 221,702 | 221,702 | ||||
Foreign currency translation | (32,609) | (32,609) | ||||
Ending balance at Mar. 31, 2021 | $ 500 | 11,208,650 | 151,988 | (4,743,009) | 555,931 | 7,174,060 |
Ending balance, shares at Mar. 31, 2021 | 49,999,891 | |||||
Beginning balance at Dec. 31, 2020 | $ 500 | 11,115,765 | 151,988 | (4,964,711) | 588,540 | 6,892,082 |
Beginning balance, shares at Dec. 31, 2020 | 49,999,891 | |||||
Net income (loss) | 322,283 | |||||
Foreign currency translation | 83,762 | |||||
Ending balance at Sep. 30, 2021 | $ 500 | 9,585,799 | 151,988 | (8,291,094) | 672,302 | 2,119,495 |
Ending balance, shares at Sep. 30, 2021 | 49,999,891 | |||||
Beginning balance at Dec. 31, 2020 | $ 500 | 11,115,765 | 151,988 | (4,964,711) | 588,540 | 6,892,082 |
Beginning balance, shares at Dec. 31, 2020 | 49,999,891 | |||||
Stock-based compensation | 371,540 | 371,540 | ||||
Net income (loss) | (267,236) | (267,236) | ||||
Foreign currency translation | 122,283 | 122,283 | ||||
Acquisition of subsidiaries | (4,313,025) | (3,648,666) | (7,961,691) | |||
Debt forgiven by major shareholder | 6,912,513 | 6,912,513 | ||||
Foreign currency translation | 122,283 | |||||
Ending balance at Dec. 31, 2021 | $ 500 | 14,086,793 | 151,988 | (8,880,613) | 710,823 | 6,069,491 |
Ending balance, shares at Dec. 31, 2021 | 49,999,891 | |||||
Beginning balance at Mar. 31, 2021 | $ 500 | 11,208,650 | 151,988 | (4,743,009) | 555,931 | 7,174,060 |
Beginning balance, shares at Mar. 31, 2021 | 49,999,891 | |||||
Stock-based compensation | 92,885 | 92,885 | ||||
Net income (loss) | 246,685 | 246,685 | ||||
Foreign currency translation | 109,733 | 109,733 | ||||
Ending balance at Jun. 30, 2021 | $ 500 | 11,301,535 | 151,988 | (4,496,324) | 665,664 | 7,623,363 |
Ending balance, shares at Jun. 30, 2021 | 49,999,891 | |||||
Stock-based compensation | 92,885 | 92,885 | ||||
Net income (loss) | (146,104) | (146,104) | ||||
Acquisition of subsidiaries | (4,257,275) | (3,648,666) | (7,905,941) | |||
Debt forgiven by major shareholder | 2,448,654 | 2,448,654 | ||||
Foreign currency translation | 6,638 | 6,638 | ||||
Ending balance at Sep. 30, 2021 | $ 500 | 9,585,799 | 151,988 | (8,291,094) | 672,302 | 2,119,495 |
Ending balance, shares at Sep. 30, 2021 | 49,999,891 | |||||
Beginning balance at Dec. 31, 2021 | $ 500 | 14,086,793 | 151,988 | (8,880,613) | 710,823 | 6,069,491 |
Beginning balance, shares at Dec. 31, 2021 | 49,999,891 | |||||
Stock-based compensation | 92,885 | 92,885 | ||||
Net income (loss) | (752,081) | (752,081) | ||||
Foreign currency translation | 31,864 | 31,864 | ||||
Ending balance at Mar. 31, 2022 | $ 500 | 14,179,678 | 151,988 | (9,632,694) | 742,687 | 5,442,159 |
Ending balance, shares at Mar. 31, 2022 | 49,999,891 | |||||
Beginning balance at Dec. 31, 2021 | $ 500 | 14,086,793 | 151,988 | (8,880,613) | 710,823 | 6,069,491 |
Beginning balance, shares at Dec. 31, 2021 | 49,999,891 | |||||
Net income (loss) | (5,853,861) | |||||
Foreign currency translation | (152,137) | |||||
Ending balance at Sep. 30, 2022 | $ 500 | 14,365,448 | 151,988 | (14,734,474) | 558,686 | 342,148 |
Ending balance, shares at Sep. 30, 2022 | 49,999,891 | |||||
Beginning balance at Mar. 31, 2022 | $ 500 | 14,179,678 | 151,988 | (9,632,694) | 742,687 | 5,442,159 |
Beginning balance, shares at Mar. 31, 2022 | 49,999,891 | |||||
Stock-based compensation | 92,885 | 92,885 | ||||
Net income (loss) | (728,269) | (728,269) | ||||
Foreign currency translation | (44,948) | (44,948) | ||||
Ending balance at Jun. 30, 2022 | $ 500 | 14,272,563 | 151,988 | (10,360,963) | 697,739 | 4,761,827 |
Ending balance, shares at Jun. 30, 2022 | 49,999,891 | |||||
Stock-based compensation | 92,885 | 92,885 | ||||
Net income (loss) | (4,373,511) | (4,373,511) | ||||
Foreign currency translation | (139,053) | (139,053) | ||||
Ending balance at Sep. 30, 2022 | $ 500 | $ 14,365,448 | $ 151,988 | $ (14,734,474) | $ 558,686 | $ 342,148 |
Ending balance, shares at Sep. 30, 2022 | 49,999,891 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net (loss) income | $ (5,853,861) | $ 322,283 | $ (267,236) | $ 1,017,511 |
Adjustments required to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 82,921 | 21,910 | 96,106 | 43,462 |
Provision for bad debts | 115,495 | 17,883 | 13,624 | |
Operating lease expense | 632,496 | 217,642 | 411,607 | 151,730 |
Stock based compensation | 278,655 | 278,655 | 371,540 | 371,540 |
Deferred tax | 1,419 | (18,570) | ||
Impairment loss | 3,823,770 | |||
Changes in assets and liabilities: | ||||
Accounts receivable | (126,720) | (12,806) | (7,731) | |
Accounts receivable-related party | 13,618 | 13,618 | ||
Other receivables and prepaid expenses | 100,801 | 22,975 | 94,992 | 20,003 |
Advances to suppliers | 13,038 | (116,795) | 1,372 | 136,479 |
Inventory | (192,791) | (18,728) | 69,738 | 6,866 |
Accounts payable | 58,507 | (748) | (27,341) | |
Accounts payable-related party | 143,242 | |||
Unearned revenue | (9,444) | 13,136 | (122,897) | |
Taxes payable | (187,009) | 46,672 | (57,467) | 169,734 |
Payment of lease liability | (525,979) | (217,642) | (473,508) | (151,730) |
Accrued liabilities and other payables | 232,910 | (41,986) | (142,027) | (166,012) |
Net cash (used in) provided by operating activities | (1,412,550) | 546,069 | (57,804) | 1,613,207 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Purchase of property and equipment | (52,485) | (1,341) | (2,173) | |
Cash acquired at acquisition of subsidiaries | 446,381 | 87,448 | 87,448 | |
Return of (payment for) acquisition | (4,517,620) | 4,087,409 | ||
Payment for acquisition | (4,497,972) | |||
Net cash provided by (used in) investing activities | 393,896 | (4,410,524) | (4,431,513) | 4,085,236 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Proceeds from related parties | 1,204,442 | 1,546,854 | ||
Change in advance from related parties | (1,525,860) | (592,814) | ||
Repayment of loan from third parties | (368,648) | |||
Capital contribution | 4,386,070 | |||
Net cash used in financing activities | (1,525,860) | (592,814) | 5,221,864 | 1,546,854 |
EFFECT OF EXCHANGE RATE CHANGE ON CASH | (677,533) | 78,415 | 191,617 | 421,559 |
NET DECREASE IN CASH AND RESTRICTED CASH | (3,222,047) | (4,378,854) | 924,164 | 7,666,856 |
CASH AND RESTRICTED CASH, BEGINNING OF PERIOD | 8,600,853 | 7,676,689 | 7,676,689 | 9,833 |
CASH AND RESTRICTED CASH, END OF PERIOD | 5,378,806 | 3,297,835 | 8,600,853 | 7,676,689 |
Supplemental Cash flow data: | ||||
Income tax paid | 72,495 | 282,319 | 404,276 | 149,393 |
Interest paid | ||||
Non-cash investing and financing activities: | ||||
Capital contribution from forgiveness of related party loan | $ 2,446,238 | |||
Accrual of unpaid investment in subsidiary | 3,907,139 | |||
Investment in subsidiary paid by shareholder on behalf of the Company | $ 734,290 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
ORGANIZATION AND DESCRIPTION OF BUSINESS | 1. ORGANIZATION AND DESCRIPTION OF BUSINESS Aixin Life International, Inc. (the “Company” or “Aixin Life” or “we”) was incorporated under the laws of the State of Colorado December 30, 1987 7,380,352 65.0 300,000 On December 12, 2017, the Company issued 56,838,151 As a result of the Share Exchange, AiXin BVI became the Company’s wholly-owned subsidiary, and the Company now owns all of the outstanding shares of HK AiXin International Group Co., Limited, a Hong Kong limited company (“AiXin HK”), which in turn owns all of the outstanding shares of Chengdu AiXinZhonghong Biological Technology Co., Ltd., a Chinese limited company (“AiXinZhonghong”), which markets and sells premium-quality nutritional products in China. AiXin BVI was incorporated on September 21, 2017 as a holding company and AiXin HK was established in Hong Kong on February 25, 2016 as an intermediate holding company. AiXinZhonghong was established in the People’s Republic of China (“PRC”) on March 4, 2013, and on May 27, 2017, the local government of the PRC issued a certificate of approval regarding the foreign ownership of AiXinZhonghong by AiXin HK. Neither AiXin BVI nor AiXin HK had operations prior to December 12, 2017. For accounting purposes, the acquisition of AiXin BVI was accounted for as a reverse acquisition and treated as a recapitalization of the Company effected by a share exchange, with AiXin BVI as the accounting acquirer. Since neither AiXin BVI nor AiXin HK had operations prior to December 12, 2017, the historical consolidated financial statements of AiXinZhonghong are now the historical consolidated financial statements of the Company. The assets and liabilities of AiXinZhonghong were brought forward at their book value and no goodwill was recognized. Effective February 1, 2018, the Company changed its name to AiXin Life International, Inc. (“Aixin Life”). The Company, through its indirectly owned AiXinZhonghong subsidiary, develops and distributes consumer products by offering a line of nutritional products. The Company sells the products through exhibition events, conferences, and person-to-person marketing. Beginning in 2019, the Company began to provide advertising services to clients who engaged the Company to help distribute their products. The Company’s business mainly focuses on a proactive approach to its customers such as hosting events for clients, which it believes is ideally suited to marketing its products because sales of nutrition products are strengthened by ongoing personal contact and support, coaching and education of its clients, as to the benefits of a healthy and active lifestyle. On May 25, 2021, AiXin HK entered into an Equity Transfer Agreement (the “Hotel Purchase Agreement”) with Chengdu Aixin Shangyan Hotel Management Co., Ltd (“Aixin Shangyan Hotel”), and its two shareholders Quanzhong Lin and Yirong Shen (“Transferor”). Pursuant to the Hotel Purchase Agreement, Aixin Life purchased 100 7,598,887 1.16 On June 2, 2021, AiXin HK entered into an Equity Transfer Agreement (the “Pharmacies Purchase Agreement”) with Chengdu Aixintang Haichuan Pharmacy Co., Ltd. (formerly Chengdu Aixintang Pharmacy Co., Ltd.) and certain affiliated entities, each of which operates a pharmacy (together, “Aixintang Pharmacies”) and its three shareholders, Quanzhong Lin, Ting Li and Xiao Ling Li (“Transferor”). Mr. Lin owned in excess of 95% of the outstanding equity the Aixintang Pharmacies. The remaining equity interest was owned by Ting Li and Xiao Ling Li. Pursuant to the Pharmacies Purchase Agreement, AiXin HK purchased all of the outstanding equity of Aixintang Pharmacies for an aggregate purchase price of RMB 34,635,845 , or approximately US$ 5.31 million (the “Transfer Price”). The Transfer Price will be reduced by an amount equal to any amounts paid or distributed by any of the Aixintang Pharmacies to the Transferor after December 31, 2020 and increased by an amount contributed to any of the Aixintang Pharmacies by the Transferor after such date. The acquisition was completed in September 2021. On July 19, 2022, HK Aixin entered into an Equity Transfer Agreement with Yunnan Shengshengyuan Technology Co., Ltd, and Yun Chen (the “Sellers”), the shareholders of Yunnan Runcangsheng Technology Company Ltd. (“Runcangsheng”). Yunnan Shengshengyuan owns in excess of 95% of the outstanding equity of 4,418,095 31,557,820 116,802 | 1. ORGANIZATION AND DESCRIPTION OF BUSINESS Aixin Life International, Inc. (the “Company” or “Aixin Life” or “we”) was incorporated under the laws of the State of Colorado December 30, 1987 7,380,352 65.0 300,000 On December 12, 2017, the Company issued 56,838,151 As a result of the Share Exchange, AiXin BVI became the Company’s wholly-owned subsidiary, and the Company now owns all of the outstanding shares of HK AiXin International Group Co., Limited, a Hong Kong limited company (“AiXin HK”), which in turn owns all of the outstanding shares of Chengdu AiXinZhonghong Biological Technology Co., Ltd., a Chinese limited company (“AiXinZhonghong”), which markets and sells premium-quality nutritional products in China. AiXin BVI was incorporated on September 21, 2017 as a holding company and AiXin HK was established in Hong Kong on February 25, 2016 as an intermediate holding company. AiXinZhonghong was established in the People’s Republic of China (“PRC”) on March 4, 2013, and on May 27, 2017, the local government of the PRC issued a certificate of approval regarding the foreign ownership of AiXinZhonghong by AiXin HK. Neither AiXin BVI nor AiXin HK had operations prior to December 12, 2017. For accounting purposes, the acquisition of AiXin BVI was accounted for as a reverse acquisition and treated as a recapitalization of the Company effected by a share exchange, with AiXin BVI as the accounting acquirer. Since neither AiXin BVI nor AiXin HK had operations prior to December 12, 2017, the historical consolidated financial statements of AiXinZhonghong are now the historical consolidated financial statements of the Company. The assets and liabilities of AiXinZhonghong were brought forward at their book value and no goodwill was recognized. Effective February 1, 2018, pursuant to Articles of Amendment to the Company’s Articles of Incorporation filed with the Secretary of State of Colorado, the Company changed its name to AiXin Life International., Inc (“Aixin Life”). The Company, through its indirectly owned AiXinZhonghong subsidiary, mainly develops and distributes consumer products by offering a line of nutritional products. The Company sells the products through exhibition events, conferences, and person-to-person marketing. Beginning in 2019, the Company began to provide advertising services to clients who engaged the Company to help distribute their products. The Company’s business mainly focuses on a proactive approach to its customers such as hosting events for clients, which it believes is ideally suited to marketing its products because sales of nutrition products are strengthened by ongoing personal contact and support, coaching and education of its clients, as to the benefits of a healthy and active lifestyle. On May 25, 2021, AiXin HK entered into an Equity Transfer Agreement with Chengdu Aixin Shangyan Hotel Management Co., Ltd (“Aixin Shangyan Hotel”), and its two shareholders Quanzhong Lin and Yirong Shen (“Transferor”). Pursuant to the agreement (the “Hotel Purchase Agreement”), Aixin Life agreed to purchase 100 7,598,887 1.16 On June 2, 2021, AiXin HK entered into an Equity Transfer Agreement with Chengdu Aixintang Haichuan Pharmacy Co., Ltd. (formerly Chengdu Aixintang Pharmacy Co., Ltd.) and certain affiliated entities, each of which operates a pharmacy (together, “Aixintang Pharmacies”) and its three shareholders, Quanzhong Lin, Ting Li and Xiao Ling Li (“Transferor”). Mr. Lin owned in excess of 95% of the outstanding equity the Aixintang Pharmacies. The remaining equity interest was owned by Ting Li and Xiao Ling Li . Pursuant to the agreement (the “Pharmacies Purchase Agreement”), AiXin HK agreed to purchase all of the outstanding equity of Aixintang Pharmacies for an aggregate purchase price of RMB 34,635,845 , or approximately US$ 5.31 million (the “Transfer Price”). The Transfer Price will be reduced by an amount equal to any amounts paid or distributed by any of the Aixintang Pharmacies to the Transferor after December 31, 2020 and increased by an amount contributed to any of the Aixintang Pharmacies by the Transferor after such date. The acquisition was completed in September 2021. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements are prepared in conformity with U.S. Generally Accepted Accounting Principles (“US GAAP”). The functional currency of AiXinZhonghong, Aixin Shangyan Hotel, Aixintang Pharmacies and Runcangsheng the The consolidated financial statements include the accounts of the Company and its current wholly owned subsidiaries, AiXin HK, AiXinZhonghong, Aixin Shangyan Hotel, Aixintang Pharmacies and Runcangsheng. Intercompany transactions and accounts were eliminated in consolidation. Unaudited Interim Financial Information These unaudited interim financial statements have been prepared in accordance with GAAP for interim financial reporting and the rules and regulations of the Securities and Exchange Commission that permit reduced disclosure for interim periods. Therefore, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. In the opinion of management, all adjustments of a normal recurring nature necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented have been made. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the year ending December 31, 2022. The balance sheets and certain comparative information as of December 31, 2021 are derived from the audited financial statements and related notes for the year ended December 31, 2021, included in the Company’s 2021 Annual Report on Form 10-K. These unaudited interim financial statements should be read in conjunction with the annual consolidated financial statements and the accompanying notes contained in our Annual Report on Form 10-K for the year ended December 31, 2021. Covid – 19; The Invasion of Ukraine On March 11, 2020, the World Health Organization announced that infections caused by the corona virus disease of 2019 (“COVID-19”) had become pandemic. In furtherance of its zero tolerance policy, the Government of China has adopted various regulations and orders, including mandatory quarantines, limits on the number of people that may gather in one location, closing non-essential businesses and travel bans to limit the spread of the disease. Many of these measures have been relaxed from time to time in various localities. However, beginning in the second half of 2021 and continuing to date, the rate of COVID-19 cases has fluctuated in China and has increased in many provinces and cities including in Sichuan Province, where the Company is located. As a result of such increases there have been periodic short-term lockdowns and restrictions on travel in Sichuan Province. All of the Company’s operations, in particular its direct sales business and hotel, have been adversely impacted by the travel and work restrictions imposed on a temporary basis in China and Chengdu to limit the spread of COVID-19. In response to COVID-19, the Company has implemented procedures to promote employee and customer safety. These measures will not significantly increase its operating costs. However, the Company cannot predict with certainty what measures may be taken by its suppliers and customers and the impact these measures may have on its future financial position, results of operations or cash flows. The invasion of Ukraine by the Russian Federation had an immediate impact on the global economy resulting in higher prices for oil and other commodities. The United States, United Kingdom, European Union and other countries responded to Russia’s invasion of Ukraine by imposing various economic sanctions and bans. Russia has responded with its own retaliatory measures. These measures have disrupted financial and economic markets. The global impact of these measures is continually evolving and cannot be predicted with certainty and there is no assurance that Russia’s invasion of Ukraine and responses thereto will not further disrupt the global economy and financial markets. While the invasion of Ukraine and responses thereto have not interrupted the Company’s operations, these or future developments resulting from the invasion of Ukraine could make it difficult to access debt and equity capital on attractive terms, if at all, and impact the Company’s ability to fund business activities, including proposed acquisitions. Use of Estimates In preparing consolidated financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates, required by management, include the recoverability of long-lived assets, allowance for doubtful accounts, and the reserve for obsolete and slow-moving inventories. Actual results could differ from those estimates. Reclassification Certain prior period amounts have been reclassified to conform to the current period presentation and had no effect on previously reported consolidated net income (loss) or accumulated deficit. Cash and Cash Equivalents For financial statement purposes, the Company considers all highly liquid investments with an original maturity of three months or less to be cash and cash equivalents. Restricted Cash The restricted cash reflects eeze of during the appeal of a judgement Accounts Receivable The Company’s policy is to maintain an allowance for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. As of September 30, 2022 and December 31, 2021, the bad debt allowance was $ 483,346 213,787 Inventories Inventories mainly consists of health supplements, drugs, pharmaceutical and nutritional products, food and beverage, hotel supplies and consumables. Inventories are valued at the lower of average cost or market, cost being determined on a moving weighted average method at the end of the month. Management compares the cost of inventories with the net realizable value and an allowance is made for writing down inventories to market value, if lower. Management periodically evaluates the composition of its inventories to identify slow-moving and obsolete inventories to determine if a valuation allowance is required. The balance of reserve for inventory valuation as of September 30, 2022 and December 31, 2021 was $ 19,641 0 Property and Equipment Property and equipment are stated at cost, less accumulated depreciation, and impairment losses, if any. Major repairs and betterments that significantly extend original useful lives or improve productivity are capitalized and depreciated over the period benefited. Maintenance and repairs are expensed as incurred. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Depreciation of property and equipment is provided using the straight-line method for substantially all assets with 5 SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED LIVES Office furniture 5 Electronic equipment 2 3 Machinery 3 Leasehold improvements 3 Vehicles 5 Impairment of Long-Lived Assets Long-lived assets, which include property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, but at least annually. Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by it. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds its fair value. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. Based on its review, the Company believes that, as of September 30, 2022 and December 31, 2021, there were no Goodwill The Company evaluates goodwill for impairment annually or more frequently when an event occurs or circumstances change that indicate the carrying value may not be recoverable. In testing goodwill for impairment, the Company may elect to utilize a qualitative assessment to evaluate whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment indicates that goodwill impairment is more likely than not, the Company performs a two-step impairment test. The Company tests goodwill for impairment under the two-step impairment test by first comparing the book value of net assets to the fair value of the reporting units. If the fair value is determined to be less than the book value or qualitative factors indicate that it is more likely than not that goodwill is impaired, a second step is performed to compute the amount of impairment as the difference between the estimated fair value of goodwill and the carrying value. The Company estimates the fair value of the reporting units using discounted cash flows. Forecasts of future cash flows are based on our best estimate of future net sales and operating expenses, based primarily on expected category expansion, pricing, market segment share, and general economic conditions. The Company completed the required testing of goodwill for impairment as of September 30, 2022, and determined that goodwill was impaired because of the current financial condition of the Company and the Company’s inability to generate future operating income without substantial sales volume increases, which are highly uncertain. Furthermore, the Company anticipates future cash flows indicate that the recoverability of goodwill is not reasonably assured. The goodwill write-down was reflected as a impairment loss, $ 3,823,770 Income Taxes Income taxes are accounted for using an asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates, applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The Company follows Accounting Standards Codification (“ASC”) Topic 740, which prescribes a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740 also provides guidance on recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Under ASC Topic 740, when tax returns are filed, it is likely that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the consolidated financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest associated with unrecognized tax benefits is classified as interest expense and penalties are classified in selling, general and administrative expenses in the statement of income. At September 30, 2022 and December 31, 2021, the Company did not take any uncertain positions that would necessitate recording a tax related liability. Revenue Recognition ASU No. 2014-09 Revenue from Contracts with Customers Topic 606. Topic 605, Revenue Recognition Revenue from sale of goods under Topic 606 ● executed contract(s) with customers that the Company believes is legally enforceable; ● identification of performance obligation in the respective contract; ● determination of the transaction price for each performance obligation in the respective contract; ● allocation of the transaction price to each performance obligation; and ● recognition of revenue only when the Company satisfies each performance obligation. The Company’s revenue recognition policies for its various operating segments are as follows: Advertising and Products Advertising Revenue Commencing in the third quarter of 2019, AiXin Zhonghong began to provide advertising services to its clients. Advertising contracts are signed to establish the price and advertising services to be provided. Pursuant to the advertising contracts, the Company provides advertising and marketing services to its clients through exhibition events, conferences, and person-to-person marketing. The Company performs a credit assessment of the customer to assess the collectability of the contract price prior to entering into contracts. Most of the advertisement contracts designated that the Company perform such advertising services for its clients through exhibition events, conferences, and person-to-person marketing during the contracted period, regardless of the number of such events. As such, the Company determined that the performance obligation is satisfied over time during the contracted period and revenue is recognized accordingly. Such advertising revenue amounted to $ 0 445,215 0 1,742,896 All of the advertising revenue is subject to the PRC VAT of 6%. This VAT may be offset by VAT paid by the Company on raw materials and other materials purchased in China. Product Revenue The Company’s revenue from sale of products is recognized when goods are delivered to the customer and no other obligation exists. The Company does not provide unconditional return or other concessions to the customer. The Company’s sales policy allows for the return of unopened products for cash after deducting certain service and transaction fees. As an alternative to the product return option, the customers have options of asking for an exchange for products with the same value. Sales revenue of AiXin Zhonghong represents the invoiced value of goods, net of value-added taxes (“VAT”). All of the Company’s products sold in China are subject to the PRC VAT of 13% since April 1, 2019. This VAT may be offset by VAT paid by the Company on raw materials and other materials purchased in China. The Company records VAT payable and VAT receivable net of payments in the financial statements. The VAT tax return is filed offsetting the payables against the receivables. Sales and purchases are recorded net of VAT collected and paid as the Company acts as an agent for the government. Hotel Hotel revenues are primarily derived from the rental of rooms, food and beverage sales and other ancillary goods and services, including but not limited to souvenir, parking and conference reservation. Each of these products and services represents a distinct performance obligation and, in exchange for these services, the Company receives fixed amounts based on published rates or negotiated contracts. Payment is due in full at the time when the services are rendered or the goods are provided. Room rental revenue is recognized on a daily basis when rooms are occupied. Food and beverage revenue and other goods and services revenue are recognized when they have been delivered or rendered to the guests as the respective performance obligations are satisfied. All of the hotel’s goods sold in China are subject to the PRC VAT of 6%. This VAT may be offset by VAT paid by the Company on raw materials and other materials purchased in China. Pharmacies The Company’s retail drugstores (Aixintang Pharmacies) recognize revenue at the time the customer takes possession of the merchandise. For pharmacy sales, each prescription claim is its own arrangement with the customer and is a performance obligation. Aixintang Pharmacies generally receives payments from customers as it satisfies its performance obligations. The Company records a receivable when it has an unconditional right to receive payment and only the passage of time is required before payment is due. Sales revenue represents the invoiced value of goods, net of VAT. All of Aixintang Pharmacies’ products sold in China are eligible for the PRC VAT of 0% as it qualifies as a small business. Manufacture and Sale The Company’s new subsidiary Runcangsheng recognizes revenue at the time products are shipped as this satisfies its performance obligations. The Company records a receivable for the sales when it has an unconditional right to receive payment and only the passage of time is required before payment is due. Sales revenue represents the invoiced value of goods, net of value-added taxes (“VAT”). All of the Company’s products sold in China are subject to the PRC VAT of 13% unless it is a qualified small subject to exemption. Unearned Revenue The Company’s unearned revenue primarily consists of advances received from customers for the rental of hotel rooms prior to the delivery of service. The room rental services are delivered (normally within one year) based upon contract terms and customer demand. Concentration of Credit Risk The operations of the Company are in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by the political, economic, and legal environments in the PRC, and by the general state of the PRC economy. The Company has cash on hand and demand deposits in accounts maintained with state-owned banks within the PRC. Cash in state-owned banks is covered by insurance up to RMB 500,000 72,500 During the three and nine months ended September 30, 2022, the Company had no customer that accounted for over 10% of its total revenue. During the three months ended September 30, 2021, the Company had two major customers that SCHEDULE OF CONCENTRATION OF RISK BY RISK FACTORS Customer Total revenue for the three months ended % of total revenue A(1) $ 146,140 18 % B 299,076 37 % During the nine months ended September 30, 2021, the Company had two major customers that Customer Total revenue for the nine % of total revenue A(1) $ 1,152,208 49 % B 590,688 25 % During the three months ended September 30, 2022, the Company had one major supplier that accounted for over 10% of its total purchases. Supplier Net purchases for the % of total purchase C(2) $ 88,948 35 % During the nine months ended September 30, 2022, the Company had one major supplier that accounted for over 10% of its total purchases. Supplier Net purchases for the % of total purchase C(2) $ 152,629 20 % During the three months ended September 30, 2021, the Company had no supplier that accounted for over 10% of its total purchase. During the nine months ended September 30, 2021, the Company had one major supplier accounted for over 10% of its total purchase. Supplier Net purchases for the % of total purchase D $ 232,584 69 % (1) Represented advertising revenues from this customer during the three and nine months ended September 30, 2021. The Company also purchased inventory from this customer in the three and nine months ended September 30, 2021. (2) The Company purchased inventory from this supplier, Runcansheng, in the three and nine months ended September 30, 2022. The Company acquired all of the outstanding equity of Runcangsheng on September 30, 2022 (see Note 17). Leases The Company determines if an arrangement is a lease at inception under FASB ASC Topic 842, Right of Use Assets (“ROU”) and lease liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement. As most of its leases do not provide an implicit rate, it uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company’s incremental borrowing rate is a hypothetical rate based on its understanding of what its credit rating would be. The ROU assets include adjustments for prepayments and accrued lease payments. The ROU asset also includes any lease payments made prior to commencement and is recorded net of any lease incentives received. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise such options. ROU assets are reviewed for impairment when indicators of impairment are present. ROU assets from operating and finance leases are subject to the impairment guidance in ASC 360, Property, Plant, and Equipment, as ROU assets are long-lived nonfinancial assets. ROU assets are tested for impairment individually or as part of an asset group if the cash flows related to the ROU asset are not independent from the cash flows of other assets and liabilities. An asset group is the unit of accounting for long-lived assets to be held and used, which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. The Company recognized no impairment of ROU assets as of September 30, 2022 and December 31, 2021. Operating leases are included in operating lease ROU and operating lease liabilities (current and non-current), on the consolidated balance sheets. Statement of Cash Flows In accordance with ASC Topic 230, “Statement of Cash Flows,” Fair Value of Financial Instruments The carrying amounts of certain of the Company’s financial instruments, including cash and equivalents, accrued liabilities and accounts payable, approximate their fair value due to their short maturities. FASB ASC Topic 825, “Financial Instruments,” requires disclosure of the fair value of financial instruments held by the Company. The carrying amounts reported in the consolidated balance sheets for current liabilities each qualify as financial instruments and are a reasonable estimate of their fair value because of the short period of time between the origination of such instruments and their expected realization and the current market rate of interest. Fair Value Measurements and Disclosures ASC Topic 820, “Fair Value Measurements and Disclosures,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The three levels are defined as follow: ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. As of September 30, 2022 and December 31, 2021, the Company did not identify any assets and liabilities that are required to be presented on the balance sheet at fair value. Foreign Currency Translation and Comprehensive Income (Loss) The functional currency of the Company is RMB. For financial reporting purposes, RMB is translated into USD as the reporting currency. Assets and liabilities are translated at the exchange rate in effect at the balance sheet dates. Revenues and expenses are translated at the average rate of exchange prevailing during the reporting period. Translation adjustments arising from the use of different exchange rates from period to period are included as a component of stockholders’ equity as “Accumulated other comprehensive income”. Gains and losses resulting from foreign currency transactions are included in income. There was no significant fluctuation in the exchange rate for the conversion of RMB to USD after the balance sheet date. The Company uses FASB ASC Topic 220, “Comprehensive Income”. Comprehensive loss is comprised of net loss and all changes to the statements of stockholders’ equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. Comprehensive income (loss) for the three and nine months ended September 30, 2022 and 2021 consisted of net income (loss) and foreign currency translation adjustments. Earnings per Share Basic income (loss) per share is computed on the basis of the weighted average number of common shares outstanding during the period. Dilution is computed by applying the treasury stock method for options and warrants. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. As of September 30, 2022 and December 31, 2021, the Company did not have any potentially dilutive instruments. Stock-Based Compensation The Company periodically grants stock options, warrants and stock Segment Reporting ASC Topic 280, “Segment Reporting,” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s chief operating decision maker organizes segments within the Company for making operating decisions assessing performance and allocating resources. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. The Company manages its business as four , and manufacture and sale The following table shows the Company’s operations by business segment for the three months ended September 30, 2022 and 2021. Revenues and expenses for the Pharmacies and Hotel segments commenced as of the respective dates of the completion of their acquisitions: SCHEDULE OF INFORMATION SEGMENTS For the Three Months Ended September 30, 2022 2021 Net revenue Advertising and products $ 338,327 $ 509,861 Pharmacies 164,735 139,947 Hotel 169,724 163,102 Total revenues, net $ 672,786 $ 812,910 Operating costs and expenses Advertising and products Cost of goods sold $ 90,391 $ 38,461 Operating expenses 301,624 267,331 Pharmacies Cost of goods sold 124,992 92,477 Operating expenses 144,164 124,138 Hotel Hotel operating costs 404,322 320,305 Operating expenses 141,197 63,707 Total operating costs and expenses $ 1,206,690 $ 906,419 (Loss) income from operations Advertising and products $ (53,688 ) $ 204,069 Pharmacies (104,421 ) (76,668 ) Hotel (375,795 ) (220,910 ) (Loss) income from operations $ (533,904 ) $ (93,509 ) The following table shows the Company’s operations by business segment for the nine months ended September 30, 2022 and 2021. Revenues and expenses for the Pharmacies and Hotel segments commenced as of the respective dates of the completion of their acquisitions: For the Nine Months Ended September 30, 2022 2021 Net revenue Advertising and products $ 371,016 $ 2,060,787 Pharmacies 517,674 139,947 Hotel 623,661 163,102 Total revenues, net $ 1,512,351 $ 2,363,836 Operating costs and expenses Advertising and products Cost of goods sold $ 98,809 $ 199,141 Operating expenses 961,885 966,903 Pharmacies Cost of goods sold 395,096 92,477 Operating expenses 467,315 124,138 Hotel Hotel operating costs 1,334,041 320,305 Operating expenses 300,501 63,707 Total operating costs and expenses $ 3,557,647 $ 1,766,671 (Loss) income from operations Advertising and products $ (689,678 ) $ 894,743 Pharmacies (344,737 ) (76,668 ) Hotel (1,010,881 ) (220,910 ) (Loss) income from operations $ (2,045,296 ) $ 597,165 Segment assets As of As of Advertising and products $ 5,309,901 $ 8,914,211 Pharmacies 719,589 931,706 Hotel 1,108,839 1,814,429 Manufacture and sale 2,872,820 - Total assets $ 10,011,149 $ 11,660,346 As the acquisition of R u the and operating results of the manufacture and sale segment New Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact that the standard will have on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470- 20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. This ASU (1) simplifies the accounting for convertible debt instruments and convertible preferred stock by removing the existing guidance in ASC 470-20, Debt: Debt with Conversion and Other Options, that requires entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible debt or preferred stock; (2) revises the scope exception from derivative accounting in ASC 815-40 for freestanding financial instruments and embedded features that are both indexed to the issuer’s own stock and classified in stockholders’ equity, by removing certain criteria required for equity classification; and (3) revises the guidance in ASC 260, Earnings Per Share, to require entities to calculate diluted earnings per share (EPS) for convertible instruments by using the if-converted method. In addition, entities must presume share settlement for purposes of calculating diluted EPS when an instrument may be settled in cash or shares. For SEC filers, excluding smaller reporting companies, ASU 2020-06 is effective for fiscal years beginning after December 15, 2021 including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. For all other entities, ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Entities should adopt the guidance as of the beginning of the fiscal year of adoption and cannot adopt the guidance in an interim reporting period. The adoption of ASU 2020-06 is not expected to have any impact on the Company’s consolidated financial statements presentation or disclosures. The Company’s management does not believe that any other recently | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements are prepared in conformity with U.S. Generally Accepted Accounting Principles (“US GAAP”). The functional currency of AiXinZhonghong, Aixin Shangyan Hotel and Aixintang Pharmacies is Chinese Renminbi (“RMB”). The accompanying consolidated financial statements are translated from RMB and presented in U.S. dollars (“USD”). The consolidated financial statements include the accounts of the Company and its current wholly owned subsidiaries, AiXin HK, AiXinZhonghong, Aixin Shangyan Hotel and Aixintang Pharmacies. Intercompany transactions and accounts were eliminated in consolidation. Unaudited Interim Financial Information Reclassification Certain prior period amounts have been reclassified to conform to the current period presentation and had no effect on previously reported consolidated net income (loss) or accumulated deficit. Covid – 19 On March 11, 2020, the World Health Organization announced that infections caused by the corona virus disease of 2019 (“COVID-19”) had become pandemic. The Government of China has adopted various regulations and orders, including mandatory quarantines, limits on the number of people that may gather in one location, closing non-essential businesses and travel bans to limit the spread of the disease. Many of these measures have been relaxed due to the decrease in the prevalence of Covid-19 in China. However, since February 2022 to date, COVID-19 cases have increased again in many cities of China. There has been only a slight increase in the number of cases in Sichuan Province, the Province in which the Company is located, and the Company does not expect that the increase will impact the Company’s operations. Financial impacts related to COVID-19, including the Company’s actions and costs incurred in response to the pandemic, were not material to the Company’s financial position, results of operations or cash flows for the year ended December 31, 2021. The Company has implemented procedures to promote employee and customer safety. These measures will not significantly increase its operating costs. However, the Company cannot predict with certainty what measures may be taken by its suppliers and customers and the impact these measures may have on its future financial position, results of operations or cash flows. Use of Estimates In preparing consolidated financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates, required by management, include the recoverability of long-lived assets, allowance for doubtful accounts, and the reserve for obsolete and slow-moving inventories. Actual results could differ from those estimates. Cash and Cash Equivalents For financial statement purposes, the Company considers all highly liquid investments with an original maturity of three months or less to be cash and cash equivalents. Restricted Cash The restricted cash was for the temporary frozen of bank accounts held by Chengdu Aixintang Haichuan Pharmacy Co., Ltd. (“Aixintang Pharmacy”) and its branches by the court for a complaint against the Aixintang Pharmacy while Aixintang Pharmacy is the process of appeal (see Note 17 – litigation). Accounts Receivable The Company’s policy is to maintain an allowance for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. As of December 31, 2021 and 2020, the bad debt allowance was $ 213,787 148,520 Inventories Inventories mainly consists of health supplements, drugs, pharmaceutical and nutritional products, food and beverage, hotel supplies and consumables. Inventories are valued at the lower of average cost or market, cost being determined on a moving weighted average method at the end of the month. Management compares the cost of inventories with the net realizable value and an allowance is made for writing down inventories to market value, if lower. The Company recorded no In July 2015, the FASB issued Accounting Standards Update (“ASU”) 2015-11, “Inventory (Topic 330) - Simplifying the Measurement of Inventory,” which requires that inventory within the scope of the guidance be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Property and Equipment Property and equipment are stated at cost, less accumulated depreciation, and impairment losses, if any. Major repairs and betterments that significantly extend original useful lives or improve productivity are capitalized and depreciated over the period benefited. Maintenance and repairs are expensed as incurred. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Depreciation of property and equipment is provided using the straight-line method for substantially all assets with 5 SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED LIVES Office furniture 5 Electronic equipment 2 3 Machinery 3 Leasehold improvements 3 Vehicles 5 Impairment of Long-Lived Assets Long-lived assets, which include property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, but at least annually. Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by it. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds its fair value. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. Based on its review, the Company believes that, as of December 31, 2021 and 2020, there were no Income Taxes Income taxes are accounted for using an asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates, applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The Company follows Accounting Standards Codification (“ASC”) Topic 740, which prescribes a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740 also provides guidance on recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Under ASC Topic 740, when tax returns are filed, it is likely that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the consolidated financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest associated with unrecognized tax benefits is classified as interest expense and penalties are classified in selling, general and administrative expenses in the statement of income. At December 31, 2021 and 2020, the Company did no Revenue Recognition ASU No. 2014-09 Revenue from Contracts with Customers Topic 606. Topic 605, Revenue Recognition Revenue from sale of goods under Topic 606 ● executed contract(s) with customers that the Company believes is legally enforceable; ● identification of performance obligation in the respective contract; ● determination of the transaction price for each performance obligation in the respective contract; ● allocation of the transaction price to each performance obligation; and ● recognition of revenue only when the Company satisfies each performance obligation. The Company’s revenue recognition policies for its various operating segments are as follows: Advertising and Products Advertising Revenue Commencing in the third quarter of 2019, AiXin Zhonghong began to provide advertising services to its clients. Advertising contracts are signed to establish the price and advertising services to be provided. Pursuant to the advertising contracts, the Company provides advertising and marketing services to its clients through exhibition events, conferences, and person-to-person marketing. The Company performs a credit assessment of the customer to assess the collectability of the contract price prior to entering into contracts. Most of the advertisement contracts designated that the Company perform such advertising services for its clients through exhibition events, conferences, and person-to-person marketing during the contracted period, regardless of the number of such events. As such, the Company determined that the performance obligation is satisfied over time during the contracted period and revenue is recognized accordingly. Such advertising revenue amounted to $ 1,944,811 1,863,785 A smaller proportion of the Company’s advertising revenue is generated from services to its clients through exhibition events, conferences, and person-to-person marketing, and charges based on the number of promotional products sold. Such advertising revenue amounted to $ 0 and $ 6,558 for the years ended December 31, 2021 and 2020, respectively. All of the advertising revenue is subject to the PRC VAT of 6 Products Revenue The Company’s revenue from sale of products is recognized when goods are delivered to the customer and no other obligation exists. The Company does not provide unconditional return or other concessions to the customer. The Company’s sales policy allows for the return of unopened products for cash after deducting certain service and transaction fees. As an alternative to the product return option, the customers have options of asking for an exchange for products with the same value. Sales revenue of AiXin Zhonghong represents the invoiced value of goods, net of value-added taxes (“VAT”). All of the Company’s products sold in China are subject to the PRC VAT of 13 Hotel Hotel revenues are primarily derived from the rental of rooms, food and beverage sales and other ancillary goods and services, including but not limited to souvenir, parking and conference reservation. Each of these products and services represents a distinct performance obligation and, in exchange for these services, the Company receives fixed amounts based on published rates or negotiated contracts. Payment is due in full at the time when the services are rendered or the goods are provided. Room rental revenue is recognized on a daily basis when rooms are occupied. Food and beverage revenue and other goods and services revenue are recognized when they have been delivered or rendered to the guests as the respective performance obligations are satisfied. All of the hotel’s goods sold in China are subject to the PRC VAT of 6 Pharmacies The Company’s retail drugstores (Aixintang Pharmacies) recognize revenue at the time the customer takes possession of the merchandise. For pharmacy sales, each prescription claim is its own arrangement with the customer and is a performance obligation. Aixintang Pharmacies generally receives payments from customers as it satisfies its performance obligations. The Company records a receivable when it has an unconditional right to receive payment and only the passage of time is required before payment is due. Sales revenue represents the invoiced value of goods, net of VAT. All of Aixintang Pharmacies’ products sold in China are eligible for the PRC VAT of 0 Unearned Revenue The Company’s unearned revenue primarily consists of advances received from customers for the rental of hotel rooms prior to the delivery of service. The room rental services are delivered (normally within one year) based upon contract terms and customer demand. Concentration of Credit Risk The operations of the Company are in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by the political, economic, and legal environments in the PRC, and by the general state of the PRC economy. The Company has cash on hand and demand deposits in accounts maintained with state-owned banks within the PRC. Cash in state-owned banks is covered by insurance up to RMB 500,000 72,500 During the year ended December 31, 2021, the Company had two major customers that accounted for over 10% of its total revenue. SCHEDULE OF CONCENTRATION OF RISK BY RISK FACTORS Customer Net sales for the % of total revenue A* $ 1,286,792 42 % B 658,018 21 % During the year ended December 31, 2020, the Company had one major customer that accounted for over 10% of its total revenue. Customer Net sales for the % of total revenue A* $ 1,863,785 76 % During the year ended December 31, 2021, the Company had one major supplier that accounted for over 10% of its total purchases. Supplier Net purchases for the year ended % of total purchase C $ 233,187 40 % During the year ended December 31, 2020, the Company had three major suppliers that accounted for over 10% of its total purchases. Supplier Net purchase for the year ended % of total purchase A* $ 110,037 55 % D 27,225 14 % E 20,000 10 % * Represented advertising revenues from this customer during the years ended December 31, 2021 and 2020. The Company also purchased inventory from this customer during the years ended December 31, 2021 and 2020. Leases The Company adopted FASB Accounting Standards Codification, Topic 842, Leases (“ASC 842”) using the modified retrospective approach, electing the practical expedient that allows the Company not to restate prior to the adoption of the standard on January 1, 2019. The Company applied the following practical expedients in the transition to the new standard allowed under ASC 842: Practical Expedient Description Reassessment of expired or existing contracts The Company elected not to reassess, at the application date, whether any expired or existing contracts contained leases, the lease classification for any expired or existing leases, and the accounting for initial direct costs for any existing leases. Use of hindsight The Company elected to use hindsight in determining the lease term (that is, when considering options to extend or terminate the lease and to purchase the underlying asset) and in assessing impairment of right-to-use assets. Reassessment of existing or expired land easements The Company elected not to evaluate existing or expired land easements that were not previously accounted for as leases under ASC 840, as allowed under the transition practical expedient. Going forward, new or modified land easements will be evaluated under ASU No. 2016-02. Separation of lease and non-lease components Lease agreements that contain both lease and non-lease components are generally accounted for separately. Short-term lease recognition exemption The Company also elected the short-term lease recognition exemption and will not recognize ROU assets or lease liabilities for leases with a term less than 12 months. The Company determines if an arrangement is a lease at inception under FASB ASC Topic 842, Right of Use Assets (“ROU”) and lease liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement. As most of its leases do not provide an implicit rate, it uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company’s incremental borrowing rate is a hypothetical rate based on its understanding of what its credit rating would be. The ROU assets include adjustments for prepayments and accrued lease payments. The ROU asset also includes any lease payments made prior to commencement and is recorded net of any lease incentives received. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise such options. ROU assets are reviewed for impairment when indicators of impairment are present. ROU assets from operating and finance leases are subject to the impairment guidance in ASC 360, Property, Plant, and Equipment, as ROU assets are long-lived nonfinancial assets. ROU assets are tested for impairment individually or as part of an asset group if the cash flows related to the ROU asset are not independent from the cash flows of other assets and liabilities. An asset group is the unit of accounting for long-lived assets to be held and used, which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. The Company recognized no impairment of ROU assets as of December 31, 2021 and 2020. Operating leases are included in operating lease ROU and operating lease liabilities (current and non-current), on the consolidated balance sheets. Statement of Cash Flows In accordance with ASC Topic 230, “Statement of Cash Flows,” Fair Value of Financial Instruments The carrying amounts of certain of the Company’s financial instruments, including cash and equivalents, accrued liabilities and accounts payable, approximate their fair value due to their short maturities. FASB ASC Topic 825, “Financial Instruments,” requires disclosure of the fair value of financial instruments held by the Company. The carrying amounts reported in the consolidated balance sheets for current liabilities each qualify as financial instruments and are a reasonable estimate of their fair value because of the short period of time between the origination of such instruments and their expected realization and the current market rate of interest. Fair Value Measurements and Disclosures ASC Topic 820, “Fair Value Measurements and Disclosures,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The three levels are defined as follow: ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. As of December 31, 2021 and 2020, the Company did not identify any assets and liabilities that are required to be presented on the balance sheet at fair value. Foreign Currency Translation and Comprehensive Income (Loss) The functional currency of the Company is RMB. For financial reporting purposes, RMB is translated into USD as the reporting currency. Assets and liabilities are translated at the exchange rate in effect at the balance sheet dates. Revenues and expenses are translated at the average rate of exchange prevailing during the reporting period. Translation adjustments arising from the use of different exchange rates from period to period are included as a component of stockholders’ equity as “Accumulated other comprehensive income”. Gains and losses resulting from foreign currency transactions are included in income. There was no significant fluctuation in the exchange rate for the conversion of RMB to USD after the balance sheet date. The Company uses FASB ASC Topic 220, “Comprehensive Income”. Comprehensive loss is comprised of net loss and all changes to the statements of stockholders’ equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. Comprehensive income (loss) for the year ended December 31, 2021 and 2020 consisted of net income (loss) and foreign currency translation adjustments. Earnings per Share Basic income (loss) per share is computed on the basis of the weighted average number of common shares outstanding during the period. Dilution is computed by applying the treasury stock method for options and warrants. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. As of December 31, 2021 and 2020, the Company did no Stock-Based Compensation The Company periodically grants stock options, warrants and awards to employees and non-employees in non-capital raising transactions as compensation for services rendered. The Company accounts for stock option, stock warrant and stock award grants to employees based on the authoritative guidance provided by the FASB where the value of the award is measured on the date of grant and recognized over the vesting period. The Company accounts for stock option, stock warrant and stock award grants to non-employees in accordance with the authoritative guidance of the FASB where the value of the stock compensation is determined based upon the measurement date at either a) the date at which a performance commitment is reached, or b) at the date at which the necessary performance to earn the equity instruments is complete. Stock-based compensation charges generally are amortized over the vesting period on a straight-line basis. In certain circumstances where there are no future performance requirements by the employees and non-employees, option, warrant and award grants are immediately vested and the total stock-based compensation charge is recorded in the period of the measurement date. Segment Reporting ASC Topic 280, “Segment Reporting,” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s chief operating decision maker organizes segments within the Company for making operating decisions assessing performance and allocating resources. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. The Company manages its business as three operating segments, advertising and products, pharmacies, and hotels, all of which are located in the PRC. All of its revenues are derived in the PRC. All long-lived assets are located in PRC. The following table shows the Company’s operations by business segment for the year ended December 31, 2021 and 2020. Revenues and expenses for the Pharmacies and Hotel segments commenced as of the respective dates of the completion of their acquisitions: SCHEDULE OF INFORMATION SEGMENTS 2021 2020 Net revenue Advertising and products $ 2,406,988 $ 2,451,055 Pharmacies 280,447 - Hotel 378,798 - Total revenues, net $ 3,066,233 $ 2,451,055 Operating costs and expenses Advertising and products Cost of goods sold $ 316,750 $ 224,675 Operating expenses 1,344,543 1,431,920 Pharmacies Cost of goods sold 218,735 - Operating expenses 252,513 - Hotel Hotel operating costs 744,594 - Operating expenses 216,036 - Total operating costs and expenses $ 3,093,171 $ 1,656,595 Income (loss) from operations Advertising and products $ 745,695 $ 794,460 Pharmacies (190,801 ) - Hotel (581,832 ) - Income (loss) from operations $ (26,938 ) $ 794,460 Segment assets As of As of Advertising and products $ 8,914,211 $ 8,093,818 Pharmacies 931,706 - Hotel 1,814,429 - Total assets $ 11,660,346 $ 8,093,818 New Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact that the standard will have on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its FV, not to exceed the carrying amount of goodwill. The guidance should be adopted on a prospective basis. As a smaller reporting company, the standard will be effective for the Company for interim and annual reporting periods beginning after December 15, 2022, with early adoption permitted. The Company is currently evaluating the impact of adopting this standard on the Company’s consolidated financial statements presentation or disclosures. In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470- 20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. This ASU (1) simplifies the accounting for convertible debt instruments and convertible preferred stock by removing the existing guidance in ASC 470-20, Debt: Debt with Conversion and Other Options, that requires entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible debt or preferred stock; (2) revises the scope exception from derivative accounting in ASC 815-40 for freestanding financial instruments and embedded features that are both indexed to the issuer’s own stock and classified in stockholders’ equity, by removing certain criteria required for equity classification; and (3) revises the guidance in ASC 260, Earnings Per Share, to require entities to calculate diluted earnings per share (EPS) for convertible instruments by using the if-converted method. In addition, entities must presume share settlement for purposes of calculating diluted EPS when an instrument may be settled in cash or shares. For SEC filers, excluding smaller reporting companies, ASU 2020-06 is effective for fiscal years beginning after December 15, 2021 including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. For all other entities, ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Entities should adopt the guidance as of the beginning of the fiscal year of adoption and cannot adopt the guidance in an interim reporting period. The adoption of ASU 2020-06 is not expected to have any impact on the Company’s consolidated financial statements presentation or disclosures. In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt — Modifications and Extinguishments (Subtopic 470-50), Compensation — Stock Compensation (Topic 718), and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options (“ASU 2021-04”). ASU 2021-04 provides guidance as to how an issuer should account for a modification of the terms or conditions or an exchange of a freestanding equity-classified written call option (i.e., a warrant) that remains classified after modification or exchange as an exchange of the original instrument for a new instrument. An issuer should measure the effect of a modification or exchange as the difference between the fair value of the modified or exchanged warrant and the fair value of that warrant immediately before modification or exchange and then apply a recognition model that comprises four categories of transactions and the corresponding accounting treatment for each category (equity issuance, debt origination, debt modification, and modifications unrelated to equity issuance and debt origination or modification). ASU 2021-04 is effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. An entity should apply the guidance provided in ASU 2021-04 prospectively to modifications or exchanges occurring on or after the effective date. Early adoption is permitted for all entities, including adoption in an interim period. If an entity elects to early adopt ASU 2021-04 in an interim period, the guidance should be applied as of the beginning of the fiscal year that includes that interim period. The adoption of ASU 2021-04 is not expected to have any impact on the Company’s consolidated financial statements presentation or disclosures. The Company’s management does not believe that any other recently issued, but not yet effective, authoritative guidance, if currently adopted, would have a material impact on the Company’s financial statement presentation or disclosures. |
OTHER RECEIVABLES AND PREPAID E
OTHER RECEIVABLES AND PREPAID EXPENSES | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Receivables [Abstract] | ||
OTHER RECEIVABLES AND PREPAID EXPENSES | 3. OTHER RECEIVABLES AND PREPAID EXPENSES Other receivables and prepaid expenses consisted of the following at September 30, 2022 and December 31, 2021: SCHEDULE OF OTHER RECEIVABLES AND PREPAID EXPENSES September 30, 2022 December 31, 2021 Deposits $ 14,928 $ 68,433 Prepaid expenses 122,150 50,221 Employees’ social insurance 10,584 13,839 Others 14,978 10,788 Total $ 162,640 $ 143,281 | 3. OTHER RECEIVABLES AND PREPAID EXPENSES Other receivables and prepaid expenses consisted of the following at December 31, 2021 and 2020: SCHEDULE OF OTHER RECEIVABLES AND PREPAID EXPENSES December 31, 2021 December 31, 2020 Deposits $ 68,433 $ 6,624 Prepaid expenses 50,221 12,884 Employees’ social insurance 13,839 7,562 Others 10,788 5,253 Total $ 143,281 $ 32,323 |
ADVANCES TO SUPPLIERS
ADVANCES TO SUPPLIERS | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Advances To Suppliers | ||
ADVANCES TO SUPPLIERS | 4. ADVANCES TO SUPPLIERS The Company had advances to suppliers of $ 137,362 162,969 | 4. ADVANCES TO SUPPLIERS The Company had advances to suppliers of $ 162,969 155,686 |
INVENTORIES
INVENTORIES | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | ||
INVENTORIES | 5. INVENTORIES Inventories consisted of the following at September 30, 2022 and December 31, 2021: SCHEDULE OF INVENTORIES September 30, 2022 December 31, 2021 Raw material $ 152,140 $ - Work in process 4,600 - Finished goods-health supplements 183,148 6,201 Drugs, pharmaceutical and nutritional products 454,165 122,966 Food and beverage, hotel supplies and consumables 83,342 104,287 Total $ 877,395 $ 233,454 Less: inventory allowance 19,641 - Total inventories, net $ 857,754 $ 233,454 | 5. INVENTORIES Inventories consisted of the following at December 31, 2021 and 2020: SCHEDULE OF INVENTORIES December 31, 2021 December 31, 2020 Raw material Work in process Finished goods – health supplements $ 6,201 $ 45,535 Drugs, pharmaceutical and nutritional products 122,966 - Food and beverage, hotel supplies and consumables 104,287 - Total $ 233,454 $ 45,535 Less: inventory allowance Total inventories, net 233,454 45,535 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
PROPERTY AND EQUIPMENT, NET | 6. PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following at September 30, 2022 and December 31, 2021: SCHEDULE OF PROPERTY AND EQUIPMENT September 30, 2022 December 31, 2021 Vehicles $ 413,857 $ 295,502 Office furniture 80,039 64,263 Electronic equipment 19,980 22,304 Machinery 1,104,495 106,080 Leasehold improvements 1,104,450 256,548 Other 16,955 6,374 Total 2,739,776 751,071 Less: Accumulated depreciation (829,085 ) (460,923 ) Property and equipment, net $ 1,910,691 $ 290,148 Depreciation expense for the three months ended September 30, 2022 and 2021 was $ 25,111 10,608 Depreciation expense for the nine months ended September 30, 2022 and 2021 was $ 81,036 21,478 | 6. PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following at December 31, 2021 and 2020: SCHEDULE OF PROPERTY AND EQUIPMENT December 31, 2021 December 31, 2020 Vehicles $ 295,502 $ 288,604 Office furniture 64,263 48,464 Electronic equipment 22,304 14,852 Machinery 106,080 - Leasehold improvements 256,548 - Other 6,374 - Total 751,071 351,920 Less: Accumulated depreciation (460,923 ) (284,103 ) Property and equipment, net $ 290,148 $ 67,817 Depreciation expense for the years ended December 31, 2021 and 2020 was $ 95,026 43,462 |
INTANGIBLE ASSET, NET
INTANGIBLE ASSET, NET | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
INTANGIBLE ASSET, NET | 7. INTANGIBLE ASSET, NET Intangible asset consisted of the following at September 30, 2022 and December 31, 2021: SCHEDULE OF INTANGIBLE ASSET September 30, 2022 December 31, 2021 Software $ 8,479 $ 7,896 Less: Accumulated amortization (7,086 ) (5,956 ) Intangible asset, net $ 1,393 $ 1,940 Amortization expense for the three months ended September 30, 2022 and 2021 was $ 591 432 Amortization expense for the nine months ended September 30, 2022 and 2021 was $ 1,885 432 | 7. INTANGIBLE ASSET, NET Intangible asset consisted of the following at December 31, 2021 and 2020: SCHEDULE OF INTANGIBLE ASSET December 31, 2021 December 31, 2020 Software $ 7,896 $ - Less: Accumulated amortization (5,956 ) - Intangible asset, net $ 1,940 $ - Amortization expense for the years ended December 31, 2021 and 2020 was $ 1,080 0 |
TAXES PAYABLE
TAXES PAYABLE | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Taxes Payable | ||
TAXES PAYABLE | 8. TAXES PAYABLE Taxes payable consisted of the following at September 30, 2022 and December 31, 2021: SCHEDULE OF TAX PAYABLE September 30, 2022 December 31, 2021 Value-added $ 12,979 $ 97,917 Income 29,979 109,396 City construction 1,760 7,018 Education 1,479 5,064 Other 9,745 13,242 Taxes payable $ 55,942 $ 232,637 | 8. TAXES PAYABLE Taxes payable consisted of the following at December 31, 2021 and 2020: SCHEDULE OF TAX PAYABLE December 31, 2021 December 31, 2020 Value-added $ 97,917 $ 32,318 Income 109,396 235,300 City construction 7,018 2,422 Education 5,064 1,781 Other 13,242 11,674 Taxes payable $ 232,637 $ 283,495 |
ACCRUED LIABILITIES AND OTHER P
ACCRUED LIABILITIES AND OTHER PAYABLES | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Payables and Accruals [Abstract] | ||
ACCRUED LIABILITIES AND OTHER PAYABLES | 9. ACCRUED LIABILITIES AND OTHER PAYABLES Accrued liabilities and other payables consisted of the following at September 30, 2022 and December 31, 2021: SCHEDULE OF ACCRUED LIABILITIES AND OTHER PAYABLES September 30, 2022 December 31, 2021 Accrued employees’ social insurance $ 258,094 $ 327,735 Accrued payroll and commission 264,613 179,183 Accrued rent expense 11,625 29,000 Construction payable 1,463,969 111,807 Payable for equipment purchase 20,051 - Accrued professional fees 206,427 50,840 Deposit 11,668 12,239 Other payables 44,998 41,596 Acquisition payable (see Note 17) 3,622,293 - Total $ 5,903,738 $ 752,400 | 9. ACCRUED LIABILITIES AND OTHER PAYABLES Accrued liabilities and other payables consisted of the following at December 31, 2021 and 2020: SCHEDULE OF ACCRUED LIABILITIES AND OTHER PAYABLES December 31, 2021 December 31, 2020 Accrued employees’ social insurance $ 327,735 $ 364,870 Accrued payroll and commission 179,183 105,844 Accrued rent expense 29,000 - Construction payable 111,807 - Payable for equipment purchase Accrued professional fees 50,840 16,927 Deposit 12,239 - Other payables 41,596 26,598 Acquisition payable (see Note 17) Total $ 752,400 $ 514,239 |
LOAN FROM THIRD PARTIES
LOAN FROM THIRD PARTIES | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Loan From Third Parties | ||
LOAN FROM THIRD PARTIES | 10. LOAN FROM THIRD PARTIES As of September 30, 2022 and December 31, 2021, the Company had advances from former shareholders and unrelated third parties in an aggregate amount of $ 84,347 94,153 | 10. LOAN FROM THIRD PARTIES As of December 31, 2021 and 2020, the Company had advances from former shareholders and unrelated third parties of Aixin Shangyan Hotel in an aggregate amount of $ 94,153 0 |
LOAN TO THIRD PARTY
LOAN TO THIRD PARTY | 12 Months Ended |
Dec. 31, 2021 | |
Loan To Third Party | |
LOAN TO THIRD PARTY | 11. LOAN TO THIRD PARTY On June 8, 2020, the Company entered into an unsecured loan agreement with a third party, pursuant to which the Company agreed to lend RMB 50,300,000 7,408,389 74,000 10,718 July 28, 2020 535,906 |
LEASE
LEASE | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Lease | ||
LEASE | 11. LEASE Concurrent with the completion of the sale of its rights to a portion of a building completed in 2019, the Company entered into an agreement to lease a portion of the building back from the buyer over a lease term of 2 207,049 1,389,731 4.75 March 31, 2021 The Company also has operating leases for other sales locations under various operating lease arrangements. The leases have remaining lease terms of approximately 0.19 3.69 Aixin Shangyan Hotel leases its hotel premises under an operating lease arrangement. The lease has a remaining lease term of approximately 1.25 Aixintang Pharmacies lease retail pharmacy stores under operating lease arrangements, with remaining lease terms of 0.62 3.92 Balance sheet information related to the Company’s leases is presented below: SCHEDULE OF OPERATING LEASE LIABILITIES September 30, 2022 December 31, 2021 Operating Leases Operating lease right-of-use assets $ 1,173,616 $ 2,049,775 Operating lease liabilities – current $ 772,632 $ 848,230 Operating lease liability – non-current 382,152 1,138,710 Total operating lease liabilities $ 1,154,784 $ 1,986,940 The following provides details of the Company’s lease expenses: SCHEDULE OF OPERATING LEASE EXPENSES Three Months Ended September 30, 2022 2021 Operating lease expenses $ 183,051 $ 161,389 Nine Months Ended September 30, 2022 2021 Operating lease expenses $ 632,496 $ 217,642 Other information related to leases is presented below: SCHEDULE OF OTHER INFORMATION RELATED LEASES Nine Months Ended September 30, 2022 2021 Cash Paid For Amounts Included In Measurement of Liabilities: Operating cash flows from operating leases $ 525,979 $ 217,642 Weighted Average Remaining Lease Term: Operating leases 1.65 2.42 Weighted Average Discount Rate: Operating leases 4.75 % 4.75 % Maturities of lease liabilities were as follows: SCHEDULE OF MATURITIES OF LEASE LIABILITIES For the year ending December 31: 2022 (excluding the nine months ended September 30, 2022) $ 215,864 2023 782,260 2024 123,488 2025 51,579 2026 21,751 Total lease payments 1,194,942 Less: imputed interest (40,158 ) Total lease liabilities 1,154,784 Less: current portion (772,632 ) Lease liabilities – non-current portion $ 382,152 | 12. LEASE Concurrent with the completion of the sale of its rights to a portion of a building completed in 2019, the Company entered into an agreement to lease a portion of the building back from the buyer over a lease term of 2 years 207,049 1,389,731 4.75 March 31, 2021 The Company also has operating leases for other sales locations under various operating lease arrangements. The leases have remaining lease terms of approximately 0.5 5 years Aixin Shangyan Hotel leases its hotel premises under an operating lease arrangement. The lease has a remaining lease term of approximately 2 Aixintang Pharmacies lease retail pharmacy stores under operating lease arrangements, with remaining lease terms of 2 5 Balance sheet information related to the Company’s leases is presented below: SCHEDULE OF OPERATING LEASE LIABILITIES December 31, 2021 December 31, 2020 Operating Leases Operating lease right-of-use assets $ 2,049,775 $ 100,029 Operating lease liabilities – current $ 848,230 $ 70,780 Operating lease liability – non-current 1,138,710 29,250 Total operating lease liabilities $ 1,986,940 $ 100,030 The following provides details of the Company’s lease expenses: SCHEDULE OF OPERATING LEASE EXPENSES 2021 2020 Years Ended December 31, 2021 2020 Operating lease expenses $ 411,607 $ 151,730 Other information related to leases is presented below: SCHEDULE OF OTHER INFORMATION RELATED LEASES Years Ended December 31, 2021 2020 Cash Paid For Amounts Included In Measurement of Liabilities: Operating cash flows from operating leases $ 473,508 151,730 Weighted Average Remaining Lease Term: Operating leases 2.32 years 1.37 Weighted Average Discount Rate: Operating leases 4.75 % 4.75 % Maturities of lease liabilities were as follows: SCHEDULE OF MATURITIES OF LEASE LIABILITIES For the year ending December 31: 2022 (excluding the six months ended June 30, 2022) $ 2022 $ 912,635 2023 959,650 2024 142,251 2025 52,176 2026 24,280 Total lease payments 2,090,992 Less: imputed interest (104,052 ) Total lease liabilities 1,986,940 Less: current portion (848,230 ) Lease liabilities – non-current portion $ 1,138,710 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Related Party Transactions [Abstract] | ||
RELATED PARTY TRANSACTIONS | 12. RELATED PARTY TRANSACTIONS Account payables to related parties As of September 30, 2022 and December 31, 2021, the Company had accounts payable to related party in the amount of $ 160,911 0 for the an affiliate entity of Runcangsheng . Advance to related parties Advance to related parties consisted of the following as of the periods indicated: SCHEDULE OF RELATED PARTY TRANSACTIONS September 30, 2022 December 31, 2021 Chengdu WenJiang Aixin Nanjiang Pharmacy Co., Ltd. $ 13,240 $ 4,583 Sichuan Aixin Investment Co., Ltd. 142 4,237 Chengdu Fuxiang Tang Pharmacy Co., Ltd. 27,250 - Chengdu Wenjiang district Heneng hupu Pharmacy Co., Ltd 40,222 - Chengdu Lisheng Huiren Tang Pharmacy Co., Ltd. 11,788 10,235 Total $ 92,642 $ 19,055 Advance to related parties 92,642 19,055 Advance from related parties Advance from related parties consisted of the following as of the periods indicated: September 30, 2022 December 31, 2021 Quanzhong Lin $ 619,359 $ 1,822,705 Yirong Shen 87,158 97,292 Branch manager - 1,667 Chengdu Aixin E-Commerce Company Ltd. 13,777 15,378 Chengdu Aixin International travel service Co, Ltd 6,356 2,388 Aixin Life Beauty - 7,724 Total $ 726,650 $ 1,947,154 Advance from related parties 726,650 1,947,154 All the related party entities are controlled by Mr. Quanzhong Lin (the Chairman, President and major shareholder of Aixin Life). These advances to and from related parties were for working capital purpose, payable on demand, and bear no interest. Yirong Shen was a major shareholder of Aixin Shangyan Hotel prior to the closing of Hotel Purchase Agreement, and she serves as the supervisor of Aixin Shangyan Hotel. Office lease from a Major Shareholder In May 2014, the Company entered a lease with its major shareholder for an office. The lease term was for three years expiring in May 2017 with an option to renew. The monthly rent was RMB 5,000 757 May 28, 2023 5,000 757 6,056 for the year ended September 30, 2023. | 13. RELATED PARTY TRANSACTIONS Advance to related parties SCHEDULE OF RELATED PARTY TRANSACTIONS Advance to related parties consisted of the following as of the periods indicated: December 31, 2021 December 31, 2020 Chengdu WenJiang Aixin Nanjiang Pharmacy Co., Ltd. $ 4,583 $ - Qionglai Weide Pharmacy - 10,421 Sichuan Aixin Investment Co., Ltd 4,237 - Chengdu Xindu Cundetang Pharmacy Co., Ltd. - 5,318 Chengdu Lisheng Huiren Tang Pharmacy Co., Ltd. 10,235 - Total $ 19,055 $ 15,739 Advance from related parties Advance from related parties consisted of the following as of the periods indicated: December 31, 2021 December 31, 2020 Quanzhong Lin $ 1,822,705 $ 258,862 Yirong Shen 97,292 - Branch manager 1,667 - Chengdu Aixin E-Commerce Company Ltd. 15,378 3,240 Chengdu Aixin International travel service Co, Ltd 2,388 - Chengdu Beibang Pharmacy - 2,748 Aixin Life Beauty 7,724 - Total $ 1,947,154 $ 264,850 All the related party entities are controlled by Mr. Quanzhong Lin (the Chairman, President and major shareholder of Aixin Life). These advances to and from related parties were for working capital purpose, payable on demand, and bear no interest. Yirong Shen was a major shareholder of Aixin Shangyan Hotel prior to the closing of Hotel Purchase Agreement, and she serves as the supervisor of Aixin Shangyan Hotel. Office lease from a Major Shareholder In May 2014, the Company entered a lease with its major shareholder for an office. The lease term was for three years 5,000 774 May 28, 2023 5,000 774 9,300 3,875 |
INCOME TAXES
INCOME TAXES | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
INCOME TAXES | 13. INCOME TAXES The Company was incorporated in the United States of America (“USA”) and has operations in one tax jurisdiction, i.e. the PRC. The Company generated substantially all of its sales from its operations in the PRC for the three and nine months ended September 30, 2022 and 2021, and recorded income tax provision for the periods. China has a tax rate of 25 Uncertain Tax Positions Interest associated with unrecognized tax benefits are classified as income tax, and penalties are classified in selling, general and administrative expenses in the statements of operations. For the three and nine months ended September 30, 2022 and 2021, the Company had no unrecognized tax benefits and related interest and penalties expenses. Currently, the Company is not subject to examination by major tax jurisdictions. | 14. INCOME TAXES The Company was incorporated in the United States of America (“USA”) and has operations in one tax jurisdiction, i.e. the PRC. The Company generated substantially all of its sales from its operations in the PRC for the years ended December 31, 2021 and 2020, and recorded an income tax provision for each of such periods. China has a tax rate of 25 The components of the provision for income taxes for the years ended December 31, 2021 and 2020 consisted of the following: SCHEDULE OF COMPONENTS OF THE PROVISION FOR INCOME TAXES 2021 2020 For the Year Ended December 31, 2021 2020 Current: China $ 292,891 $ 340,127 Total current 292,891 340,127 Deferred: China (18,570 ) - Total deferred (18,570 ) - Total income tax expense $ 274,321 $ 340,127 Deferred tax assets as of December 31, 2021 and 2020 consisted of the following: SCHEDULE OF DEFERRED TAX ASSETS December 31, 2021 December 31, 2010 Deferred tax assets: Accumulated amortization $ 18,795 $ - The following table reconciles the statutory rates to the Company’s effective tax rate for years ended December 31, 2021 and 2020: SCHEDULE OF EFFECTIVE INCOME TAX RATE 2021 2020 Statutory U.S. federal income tax rate 21.0 % 21.0 % Foreign tax rate differential 216.5 % 5.1 % Change in valuation allowances 3,634.4 % 5.7 % Other (1) (1) - % (6.7 )% Effective combined tax rate 3,871.9 % 25.1 % (1) Primarily consists of utilization of net operating losses in China As of December 31, 2021, the Company had $ 1,753,139 Uncertain Tax Positions Interest associated with unrecognized tax benefits are classified as income tax, and penalties are classified in selling, general and administrative expenses in the statements of operations. For the years ended December 31, 2021 and 2020, the Company had no |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Equity [Abstract] | ||
STOCKHOLDERS’ EQUITY | 14. STOCKHOLDERS’ EQUITY On August 17, 2020, by unanimous written consent in lieu of a meeting, the Board adopted resolutions authorizing a one 20,000,000 0.001 500,000,000 .00001 As of September 30, 2022 and December 31, 2021, the Company had 49,999,891 Stock Awards Issued for Services On October 22, 2019, the Company granted and issued 37,500 337,500 9 On October 24, 2019, the Company granted and issued 550,000 1,520,200 2.764 The stock awards will vest over five ( 5 ) years from the grant date, and the grantee will forfeit a portion of the shares granted (“Shares Granted”) if the grantee is no longer employed by or contracted with the Company. Specifically, the grantee will forfeit 80% of Shares Granted if no longer employed by or contracted with the Company on the date that is one year from the grant date, forfeit 60% of Shares Granted if no longer employed by or contracted with the Company on the date that is two years from the grant date, forfeit 40% of Shares Granted if no longer employed by or contracted with the Company on the date that is three years from the grant date, and forfeit 20% of Shares Granted if no longer employed by or contracted with the Company on the date that is four years from the grant date. Effective on the 5 th For the three months ended September 30, 2022 and 2021, stock-based compensation expenses were $ 92,885 278,655 765,552 3 Forgiveness of shareholder’s loan As of December 31, 2021, the Company’s major shareholder Mr. Lin forgave his loan to the Company for $ 6,912,513 Acquisition of Subsidiaries As of December 31, 2021, the Company completed the acquisitions of Aixin Shangyan Hotel and Aixintang Pharmacies (see Note 1). The acquisitions were accounted for as acquisitions of entities under common control. In connection with the acquisitions, the Company made payments to Mr. Lin in the aggregate amount of $ 4.50 29 4,313,025 | 15. STOCKHOLDERS’ EQUITY On August 17, 2020, by unanimous written consent in lieu of a meeting, the Board adopted resolutions authorizing a one (1)-for-four (4) reverse stock. The reverse stock split became effective on October 27, 2020. According to the Articles of Amendment, the Company is authorized to issue 20,000,000 0.001 500,000,000 .00001 As of December 31, 2021 and 2020, the Company had 49,999,891 In June 2020, 35,049,685 Stock Awards Issued for Services On October 22, 2019, the Company granted and issued 37,500 337,500 9 On October 24, 2019, the Company granted and issued 550,000 1,520,200 2.764 The stock awards will vest over five ( 5 ) years from the grant date, and the grantee will forfeit a portion of the shares granted (“Shares Granted”) if the grantee is no longer employed by or contracted with the Company. Specifically, the grantee will forfeit 80% of Shares Granted if no longer employed by or contracted with the Company on the date that is one year from the grant date, forfeit 60% of Shares Granted if no longer employed by or contracted with the Company on the date that is two years from the grant date, forfeit 40% of Shares Granted if no longer employed by or contracted with the Company on the date that is three years from the grant date, and forfeit 20% of Shares Granted if no longer employed by or contracted with the Company on the date that is four years from the grant date. Effective on the 5 th For the years ended December 31, 2021 and 2020, stock-based compensation expenses were $ 371,540 1,044,207 3 Forgiveness of shareholder’s loan As of December 31, 2021, the Company’s major shareholder Mr. Lin forgave his loan to the Company for $ 6,912,513 Acquisition of Subsidiaries As of December 31, 2021, the Company completed the acquisitions of Aixin Shangyan Hotel and Aixintang Pharmacies (see Note 1). The acquisitions were accounted for as acquisitions of entities under common control. In connection with the acquisitions, the Company made payments to Mr. Lin in the aggregate amount of $ 4.50 29 4,313,025 |
STATUTORY RESERVES
STATUTORY RESERVES | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Statutory Reserves | ||
STATUTORY RESERVES | 15. STATUTORY RESERVES Pursuant to the PRC corporate law, the Company is now only required to maintain one statutory reserve by appropriating from its after-tax profit before declaration or payment of dividends. The statutory reserve represents restricted retained earnings. Surplus reserve fund The Company is required to transfer 10 50 0 0 The surplus reserve fund is non-distributable other than during liquidation and can be used to fund previous years’ losses, if any, and may be utilized for business expansion or converted into share capital by issuing new shares to existing shareholders in proportion to their shareholding or by increasing the par value of the shares currently held by them, provided that the remaining reserve balance after such issue is not less than 25 Common welfare fund Common welfare fund is a voluntary fund to which the Company can elect to transfer 5 10 This fund can only be utilized on capital items for the collective benefit of the Company’s employees, such as construction of dormitories, cafeteria facilities, and other staff welfare facilities. This fund is non-distributable other than upon liquidation. | 16. STATUTORY RESERVES Pursuant to the PRC corporate law, the Company is now only required to maintain one statutory reserve by appropriating from its after-tax profit before declaration or payment of dividends. The statutory reserve represents restricted retained earnings. Surplus reserve fund The Company is required to transfer 10 50 0 140,267 The surplus reserve fund is non-distributable other than during liquidation and can be used to fund previous years’ losses, if any, and may be utilized for business expansion or converted into share capital by issuing new shares to existing shareholders in proportion to their shareholding or by increasing the par value of the shares currently held by them, provided that the remaining reserve balance after such issue is not less than 25 Common welfare fund Common welfare fund is a voluntary fund to which the Company can elect to transfer 5 10 This fund can only be utilized on capital items for the collective benefit of the Company’s employees, such as construction of dormitories, cafeteria facilities, and other staff welfare facilities. This fund is non-distributable other than upon liquidation. |
OPERATING CONTINGENCIES
OPERATING CONTINGENCIES | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
OPERATING CONTINGENCIES | 16. OPERATING CONTINGENCIES The Company’s operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environments and foreign currency exchange. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. The Company’s sales, purchases and expenses are denominated in RMB and all of the Company’s assets and liabilities are also denominated in RMB. The RMB is not freely convertible into foreign currencies under the current law. In China, foreign exchange transactions are required by law to be transacted only by authorized financial institutions. Remittances in currencies other than RMB may require certain supporting documentation to affect the remittance. Litigation The Company is, from time to time, involved in litigation incidental to the conduct of its business regarding merchandise sold, employment matters, and litigation regarding intellectual property rights. In December 2020, Jian Yiao (the “Plaintiff”) filed a complaint against Chengdu Aixintang Haichuan Pharmacy Co., Ltd. (“Aixintang Pharmacy”, or the “Defendant”) in Zhangjiagang People’s Court in Jiangsu Province. The complaint alleges that Jian Yiao is entitled to $ 392,305 (RMB 2,500,000 ) from Aixintang Pharmacy for not fulfilling the contractual obligation of a purchase agreement entered in March 2020 (the “Purchase Agreement”). Aixintang Pharmacy claimed that the Purchase Agreement was falsely entered by an employee through forged documents, and that Aixintang Pharmacy did not enter the Purchase Agreement. The Court determined that Aixintang Pharmacy breached the Purchase Agreement by not delivering the products ordered and ordered Aixintang Pharmacy to pay $ 392,305 (RMB 2,500,000 ) to the Plaintiff. In December 2020, Aixintang Pharmacy filed a motion in the Jiangsu Suzhou Intermediate People’s Court against the determination reached from the first trial. In February 2021, the judge in the Jiangsu Suzhou Intermediate People’s Court denied the Defendant’s motion and upheld the judgment from the first trial. In March 2021, Aixintang Pharmacy filed another motion to the Jiangsu High People’s Court on the basis that the Purchase Agreement was forged. In February 2022, Aixintang Pharmacy filed an appeal in Jiangsu High People’s Court against the judgment reached by Jiangsu Suzhou Intermediate People’s Court in February 2021. To date, this legal proceeding remains pending. In November 2021, the Company and Mr. Quanzhong Lin agreed that Mr. Lin shall assume any losses arising from this legal proceeding. As such, the Company did not accrue contingent losses from this legal proceeding as of September 30, 2022. The Company believes that current pending litigation will not have a material adverse effect on its consolidated financial position, results of operations or cash flows. | 17. OPERATING CONTINGENCIES The Company’s operations in the PRC are subject to specific considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environments and foreign currency exchange. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things. The Company’s sales, purchases and expenses are denominated in RMB and all of the Company’s assets and liabilities are also denominated in RMB. The RMB is not freely convertible into foreign currencies under the current law. In China, foreign exchange transactions are required by law to be transacted only by authorized financial institutions. Remittances in currencies other than RMB may require certain supporting documentation to affect the remittance. Litigation The Company is, from time to time, involved in litigation incidental to the conduct of its business regarding merchandise sold, employment matters, and litigation regarding intellectual property rights. In December 2020, Jian Yiao (the “Plaintiff”) filed a complaint against Chengdu Aixintang Haichuan Pharmacy Co., Ltd. (“Aixintang Pharmacy”, or the “Defendant”) in Zhangjiagang People’s Court in Jiangsu Province. The complaint alleges that Jian Yiao is entitled to $ 392,305 (RMB 2,500,000 ) from Aixintang Pharmacy for not fulfilling the contractual obligation of a purchase agreement entered in March 2020 (the “Purchase Agreement”). Aixintang Pharmacy claimed that the Purchase Agreement was falsely entered by an employee through forged documents, and that Aixintang Pharmacy did not enter the Purchase Agreement. The Court determined that Aixintang Pharmacy breached the Purchase Agreement by not delivering the products ordered and ordered Aixintang Pharmacy to pay $ 392,305 (RMB 2,500,000 ) to the Plaintiff. In December 2020, Aixintang Pharmacy filed a motion in the Jiangsu Suzhou Intermediate People’s Court against the determination reached from the first trial. In February 2021, the judge in the Jiangsu Suzhou Intermediate People’s Court denied the Defendant’s motion and upheld the judgment from the first trial. In March 2021, Aixintang Pharmacy filed another motion to the Jiangsu High People’s Court on the basis that the Purchase Agreement was forged. In February 2022, Aixintang Pharmacy filed an appeal in Jiangsu High People’s Court against the judgment reached by Jiangsu Suzhou Intermediate People’s Court in February 2021. To date, this legal proceeding remains pending. In November 2021, the Company and Mr. Quanzhong Lin agreed that Mr. Lin shall assume any losses arising from this legal proceeding. As such, the Company did not accrue contingent losses from this legal proceeding as of December 31, 2021. The Company believes that current pending litigation will not have a material adverse effect on its consolidated financial position, results of operations or cash flows. |
ACQUISITIONS OF SUBSIDIARIES
ACQUISITIONS OF SUBSIDIARIES | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | ||
ACQUISITIONS OF SUBSIDIARIES | 17. ACQUISITIONS OF SUBSIDIARIES Aixin Shangyan Hotel and Aixintang Pharmaciess In July and September, 2021, the Company completed the required governmental procedures and obtained the documents necessary to consider the acquisitions of Aixin Shangyan Hotel and Aixintang Pharmacies completed. Pursuant to the Hotel Purchase Agreement, AiXin HK purchased all of the outstanding equity of Aixin Shangyan Hotel from Mr. Lin and the other shareholder for a purchase price of RMB 7,598,887 , or $ 1.16 million. Pursuant to the Pharmacies Purchase Agreement, AiXin HK purchased 100 % ownership of Aixintang Pharmacies from Mr. Lin and the other two shareholders for a purchase price of RMB 34,635,845 or $ 5.31 million. The acquisitions will be accounted for as acquisitions of entities under common control under ASC 805-50-15-6, and the assets and liabilities acquired will be measured and recorded at the carrying amount under ASC 805-50-30-5. Runcangsheng On July 19, 2022, the Company entered into an Equity Transfer Agreement with Yunnan Shengshengyuan Technology Co., Ltd (“Shengshengyuan”) and Yun Chen (collectively “the Sellers”), who own 95% and 5% equity interest of Yunnan Runcangsheng Technology Co., Ltd (“Runcangsheng”), respectively. Under the terms of the Transfer Agreement, the Company agreed to purchase all of the outstanding equity interest of Yunnan Runcangsheng for an aggregate purchase price of RMB 31,557,820 or $ 4,418,095 , adjusted by $ 116,802 the amount equal to the initial net worth estimate minus the audited net worth of Runcangsheng as of December 31, 2021. In addition to transferring their respective equity interest in Runcangsheng, both Sellers agree to forgive any loans due to them from 679,000 3,622,293 The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition. Goodwill as a result of the acquisition of Runcangsheng is calculated as follows: SCHEDULE OF FAIR VALUES OF THE ASSETS ACQUIRED AND LIABILITIES ASSUMED Total purchase considerations $ 4,301,293 Estimated fair value of assets acquired: Cash $ 446,381 Accounts receivable 144,813 Accounts receivable-related party 133,011 Advance to suppliers 3,455 Other receivables and prepaid expense 127,909 Inventory 469,594 Property and equipment 1,677,272 Intangible assets 1,406 Operating lease right-of-use assets 1,990 Total assets acquired 3,005,831 Estimated fair value of liabilities assumed: Accounts payable (89,801 ) Accounts payable-related party (160,911 ) Advance from customers (4,790 ) Government grant (921,473 ) Taxes payable (21,156 ) Operating lease liability (15,182 ) Accrued liabilities and other payables (1,314,995 ) Total liabilities assumed (2,528,308 ) Total net assets acquired 477,523 Goodwill as a result of the acquisition $ 3,823,770 During the nine months ended September 30, 2022, the Company has recorded goodwill impairment in full amount. The following condensed unaudited pro forma consolidated results of operations for the Company, Runcangsheng, Aixin Shangyan Hotel and Aixintang Pharmacies for the nine months ended September 30, 2022 and 2021 present the results of operations of the Company, Runcangsheng, Aixin Shangyan Hotel, and Aixintang Pharmacies as if the acquisitions occurred on January 1, 2022 and 2021, respectively. The pro forma results are not necessarily indicative of the actual results that would have occurred had the acquisitions been completed as of the beginning of the periods presented, nor are they necessarily indicative of future consolidated results. SCHEDULE OF BUSINESS ACQUISITION PRO FORMA For the Nine Months Ended September 30, 2022 Revenue $ 1,854,617 Operating costs and expenses 3,826,342 Loss from operations (1,971,725 ) Other income 25,313 Income tax expense 643 Net loss $ (1,947,055 ) For the Nine Months Ended September 30, 2021 Revenue $ 3,869,889 Operating costs and expenses 4,240,635 Loss from operations (370,746 ) Other income 82,950 Income tax expense 292,146 Net loss $ (579,942 ) | 18. ACQUISITION OF SUBSIDIARIES ACQUISITIONS OF SUBSIDIARIES In July and September, 2021, the Company completed the required governmental procedures and obtained the documents necessary to consider the acquisitions of Aixin Shangyan Hotel and Aixintang Pharmacies completed. Pursuant to the Hotel Purchase Agreement dated May 25, 2021, AiXin HK purchased all of the outstanding equity of Aixin Shangyan Hotel from Mr. Lin and the other shareholder for a purchase price of RMB 7,598,887 , or $ 1.16 million. The Transfer Price will be reduced by an amount equal to any amounts paid or distributed by Aixin Shangyan Hotel to the Transferor after December 31, 2020 and will be increased by an amount equal to any amounts contributed to Aixin Shangyan Hotel by the Transferor after December 31, 2020. Pursuant to the Pharmacies Purchase Agreement entered on June 2, 2021, AiXin HK purchased 100% ownership of Aixintang Pharmacies from Mr. Lin and the other two shareholders for a purchase price of RMB 34,635,845 or $ 5.31 million. The purchase price will be reduced by an amount equal to any amounts paid or distributed by any of the Aixintang Pharmacies to Mr. Lin or the other two shareholders after December 31, 2020, and increased by an amount equal to any monies they contributed to any of the Aixintang Pharmacies after such date. The acquisitions will be accounted for as acquisitions of entities under common control under ASC 805-50-15-6, and the assets and liabilities acquired will be measured and recorded at the carrying amount under ASC 805-50-30-5. The following condensed unaudited pro forma consolidated results of operations for the Company, Aixin Shangyan Hotel and Aixintang Pharmacies for the years ended December 31, 2021 and 2020 present the results of operations of the Company, Aixin Shangyan Hotel and Aixintang Pharmacies as if the acquisitions occurred on January 1, 2021 and 2020, respectively. The pro forma results are not necessarily indicative of the actual results that would have occurred had the acquisitions been completed as of the beginning of the periods presented, nor are they necessarily indicative of future consolidated results. SCHEDULE OF BUSINESS ACQUISITION PRO FORMA 2021 2020 Revenue $ 4,241,991 $ 4,789,633 Operating costs and expenses 5,244,272 4,949,947 Loss from operations (1,002,281 ) (160,314 ) Other income (expense) 100,026 643,458 Income tax expense 274,321 340,155 Net income (loss) $ (1,176,576 ) $ 142,989 |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Subsequent Events [Abstract] | ||
SUBSEQUENT EVENT | 18. SUBSEQUENT EVENT The Company follows the guidance in FASB ASC 855-10 for the disclosure of subsequent events. The Company evaluated subsequent events through the date the financial statements were issued and determined the Company has no material subsequent events need to be disclosed. | 19. SUBSEQUENT EVENT The Company follows the guidance in FASB ASC 855-10 for the disclosure of subsequent events. The Company evaluated subsequent events through the date the financial statements were issued and determined the Company has no material subsequent events. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements are prepared in conformity with U.S. Generally Accepted Accounting Principles (“US GAAP”). The functional currency of AiXinZhonghong, Aixin Shangyan Hotel, Aixintang Pharmacies and Runcangsheng the The consolidated financial statements include the accounts of the Company and its current wholly owned subsidiaries, AiXin HK, AiXinZhonghong, Aixin Shangyan Hotel, Aixintang Pharmacies and Runcangsheng. Intercompany transactions and accounts were eliminated in consolidation. | Basis of Presentation The accompanying consolidated financial statements are prepared in conformity with U.S. Generally Accepted Accounting Principles (“US GAAP”). The functional currency of AiXinZhonghong, Aixin Shangyan Hotel and Aixintang Pharmacies is Chinese Renminbi (“RMB”). The accompanying consolidated financial statements are translated from RMB and presented in U.S. dollars (“USD”). The consolidated financial statements include the accounts of the Company and its current wholly owned subsidiaries, AiXin HK, AiXinZhonghong, Aixin Shangyan Hotel and Aixintang Pharmacies. Intercompany transactions and accounts were eliminated in consolidation. Unaudited Interim Financial Information |
Reclassification | Reclassification Certain prior period amounts have been reclassified to conform to the current period presentation and had no effect on previously reported consolidated net income (loss) or accumulated deficit. | Reclassification Certain prior period amounts have been reclassified to conform to the current period presentation and had no effect on previously reported consolidated net income (loss) or accumulated deficit. |
Covid – 19; The Invasion of Ukraine | Covid – 19; The Invasion of Ukraine On March 11, 2020, the World Health Organization announced that infections caused by the corona virus disease of 2019 (“COVID-19”) had become pandemic. In furtherance of its zero tolerance policy, the Government of China has adopted various regulations and orders, including mandatory quarantines, limits on the number of people that may gather in one location, closing non-essential businesses and travel bans to limit the spread of the disease. Many of these measures have been relaxed from time to time in various localities. However, beginning in the second half of 2021 and continuing to date, the rate of COVID-19 cases has fluctuated in China and has increased in many provinces and cities including in Sichuan Province, where the Company is located. As a result of such increases there have been periodic short-term lockdowns and restrictions on travel in Sichuan Province. All of the Company’s operations, in particular its direct sales business and hotel, have been adversely impacted by the travel and work restrictions imposed on a temporary basis in China and Chengdu to limit the spread of COVID-19. In response to COVID-19, the Company has implemented procedures to promote employee and customer safety. These measures will not significantly increase its operating costs. However, the Company cannot predict with certainty what measures may be taken by its suppliers and customers and the impact these measures may have on its future financial position, results of operations or cash flows. The invasion of Ukraine by the Russian Federation had an immediate impact on the global economy resulting in higher prices for oil and other commodities. The United States, United Kingdom, European Union and other countries responded to Russia’s invasion of Ukraine by imposing various economic sanctions and bans. Russia has responded with its own retaliatory measures. These measures have disrupted financial and economic markets. The global impact of these measures is continually evolving and cannot be predicted with certainty and there is no assurance that Russia’s invasion of Ukraine and responses thereto will not further disrupt the global economy and financial markets. While the invasion of Ukraine and responses thereto have not interrupted the Company’s operations, these or future developments resulting from the invasion of Ukraine could make it difficult to access debt and equity capital on attractive terms, if at all, and impact the Company’s ability to fund business activities, including proposed acquisitions. | Covid – 19 On March 11, 2020, the World Health Organization announced that infections caused by the corona virus disease of 2019 (“COVID-19”) had become pandemic. The Government of China has adopted various regulations and orders, including mandatory quarantines, limits on the number of people that may gather in one location, closing non-essential businesses and travel bans to limit the spread of the disease. Many of these measures have been relaxed due to the decrease in the prevalence of Covid-19 in China. However, since February 2022 to date, COVID-19 cases have increased again in many cities of China. There has been only a slight increase in the number of cases in Sichuan Province, the Province in which the Company is located, and the Company does not expect that the increase will impact the Company’s operations. Financial impacts related to COVID-19, including the Company’s actions and costs incurred in response to the pandemic, were not material to the Company’s financial position, results of operations or cash flows for the year ended December 31, 2021. The Company has implemented procedures to promote employee and customer safety. These measures will not significantly increase its operating costs. However, the Company cannot predict with certainty what measures may be taken by its suppliers and customers and the impact these measures may have on its future financial position, results of operations or cash flows. |
Use of Estimates | Use of Estimates In preparing consolidated financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates, required by management, include the recoverability of long-lived assets, allowance for doubtful accounts, and the reserve for obsolete and slow-moving inventories. Actual results could differ from those estimates. | Use of Estimates In preparing consolidated financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Significant estimates, required by management, include the recoverability of long-lived assets, allowance for doubtful accounts, and the reserve for obsolete and slow-moving inventories. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents For financial statement purposes, the Company considers all highly liquid investments with an original maturity of three months or less to be cash and cash equivalents. | Cash and Cash Equivalents For financial statement purposes, the Company considers all highly liquid investments with an original maturity of three months or less to be cash and cash equivalents. |
Restricted Cash | Restricted Cash The restricted cash reflects eeze of during the appeal of a judgement | Restricted Cash The restricted cash was for the temporary frozen of bank accounts held by Chengdu Aixintang Haichuan Pharmacy Co., Ltd. (“Aixintang Pharmacy”) and its branches by the court for a complaint against the Aixintang Pharmacy while Aixintang Pharmacy is the process of appeal (see Note 17 – litigation). |
Accounts Receivable | Accounts Receivable The Company’s policy is to maintain an allowance for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. As of September 30, 2022 and December 31, 2021, the bad debt allowance was $ 483,346 213,787 | Accounts Receivable The Company’s policy is to maintain an allowance for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. As of December 31, 2021 and 2020, the bad debt allowance was $ 213,787 148,520 |
Inventories | Inventories Inventories mainly consists of health supplements, drugs, pharmaceutical and nutritional products, food and beverage, hotel supplies and consumables. Inventories are valued at the lower of average cost or market, cost being determined on a moving weighted average method at the end of the month. Management compares the cost of inventories with the net realizable value and an allowance is made for writing down inventories to market value, if lower. Management periodically evaluates the composition of its inventories to identify slow-moving and obsolete inventories to determine if a valuation allowance is required. The balance of reserve for inventory valuation as of September 30, 2022 and December 31, 2021 was $ 19,641 0 | Inventories Inventories mainly consists of health supplements, drugs, pharmaceutical and nutritional products, food and beverage, hotel supplies and consumables. Inventories are valued at the lower of average cost or market, cost being determined on a moving weighted average method at the end of the month. Management compares the cost of inventories with the net realizable value and an allowance is made for writing down inventories to market value, if lower. The Company recorded no In July 2015, the FASB issued Accounting Standards Update (“ASU”) 2015-11, “Inventory (Topic 330) - Simplifying the Measurement of Inventory,” which requires that inventory within the scope of the guidance be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, less accumulated depreciation, and impairment losses, if any. Major repairs and betterments that significantly extend original useful lives or improve productivity are capitalized and depreciated over the period benefited. Maintenance and repairs are expensed as incurred. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Depreciation of property and equipment is provided using the straight-line method for substantially all assets with 5 SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED LIVES Office furniture 5 Electronic equipment 2 3 Machinery 3 Leasehold improvements 3 Vehicles 5 | Property and Equipment Property and equipment are stated at cost, less accumulated depreciation, and impairment losses, if any. Major repairs and betterments that significantly extend original useful lives or improve productivity are capitalized and depreciated over the period benefited. Maintenance and repairs are expensed as incurred. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Depreciation of property and equipment is provided using the straight-line method for substantially all assets with 5 SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED LIVES Office furniture 5 Electronic equipment 2 3 Machinery 3 Leasehold improvements 3 Vehicles 5 |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets, which include property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, but at least annually. Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by it. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds its fair value. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. Based on its review, the Company believes that, as of September 30, 2022 and December 31, 2021, there were no | Impairment of Long-Lived Assets Long-lived assets, which include property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, but at least annually. Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by it. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds its fair value. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. Based on its review, the Company believes that, as of December 31, 2021 and 2020, there were no |
Income Taxes | Income Taxes Income taxes are accounted for using an asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates, applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The Company follows Accounting Standards Codification (“ASC”) Topic 740, which prescribes a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740 also provides guidance on recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Under ASC Topic 740, when tax returns are filed, it is likely that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the consolidated financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest associated with unrecognized tax benefits is classified as interest expense and penalties are classified in selling, general and administrative expenses in the statement of income. At September 30, 2022 and December 31, 2021, the Company did not take any uncertain positions that would necessitate recording a tax related liability. | Income Taxes Income taxes are accounted for using an asset and liability method. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates, applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The Company follows Accounting Standards Codification (“ASC”) Topic 740, which prescribes a more-likely-than-not threshold for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740 also provides guidance on recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, accounting for income taxes in interim periods, and income tax disclosures. Under ASC Topic 740, when tax returns are filed, it is likely that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the consolidated financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest associated with unrecognized tax benefits is classified as interest expense and penalties are classified in selling, general and administrative expenses in the statement of income. At December 31, 2021 and 2020, the Company did no |
Revenue Recognition | Revenue Recognition ASU No. 2014-09 Revenue from Contracts with Customers Topic 606. Topic 605, Revenue Recognition Revenue from sale of goods under Topic 606 ● executed contract(s) with customers that the Company believes is legally enforceable; ● identification of performance obligation in the respective contract; ● determination of the transaction price for each performance obligation in the respective contract; ● allocation of the transaction price to each performance obligation; and ● recognition of revenue only when the Company satisfies each performance obligation. The Company’s revenue recognition policies for its various operating segments are as follows: Advertising and Products Advertising Revenue Commencing in the third quarter of 2019, AiXin Zhonghong began to provide advertising services to its clients. Advertising contracts are signed to establish the price and advertising services to be provided. Pursuant to the advertising contracts, the Company provides advertising and marketing services to its clients through exhibition events, conferences, and person-to-person marketing. The Company performs a credit assessment of the customer to assess the collectability of the contract price prior to entering into contracts. Most of the advertisement contracts designated that the Company perform such advertising services for its clients through exhibition events, conferences, and person-to-person marketing during the contracted period, regardless of the number of such events. As such, the Company determined that the performance obligation is satisfied over time during the contracted period and revenue is recognized accordingly. Such advertising revenue amounted to $ 0 445,215 0 1,742,896 All of the advertising revenue is subject to the PRC VAT of 6%. This VAT may be offset by VAT paid by the Company on raw materials and other materials purchased in China. Product Revenue The Company’s revenue from sale of products is recognized when goods are delivered to the customer and no other obligation exists. The Company does not provide unconditional return or other concessions to the customer. The Company’s sales policy allows for the return of unopened products for cash after deducting certain service and transaction fees. As an alternative to the product return option, the customers have options of asking for an exchange for products with the same value. Sales revenue of AiXin Zhonghong represents the invoiced value of goods, net of value-added taxes (“VAT”). All of the Company’s products sold in China are subject to the PRC VAT of 13% since April 1, 2019. This VAT may be offset by VAT paid by the Company on raw materials and other materials purchased in China. The Company records VAT payable and VAT receivable net of payments in the financial statements. The VAT tax return is filed offsetting the payables against the receivables. Sales and purchases are recorded net of VAT collected and paid as the Company acts as an agent for the government. Hotel Hotel revenues are primarily derived from the rental of rooms, food and beverage sales and other ancillary goods and services, including but not limited to souvenir, parking and conference reservation. Each of these products and services represents a distinct performance obligation and, in exchange for these services, the Company receives fixed amounts based on published rates or negotiated contracts. Payment is due in full at the time when the services are rendered or the goods are provided. Room rental revenue is recognized on a daily basis when rooms are occupied. Food and beverage revenue and other goods and services revenue are recognized when they have been delivered or rendered to the guests as the respective performance obligations are satisfied. All of the hotel’s goods sold in China are subject to the PRC VAT of 6%. This VAT may be offset by VAT paid by the Company on raw materials and other materials purchased in China. Pharmacies The Company’s retail drugstores (Aixintang Pharmacies) recognize revenue at the time the customer takes possession of the merchandise. For pharmacy sales, each prescription claim is its own arrangement with the customer and is a performance obligation. Aixintang Pharmacies generally receives payments from customers as it satisfies its performance obligations. The Company records a receivable when it has an unconditional right to receive payment and only the passage of time is required before payment is due. Sales revenue represents the invoiced value of goods, net of VAT. All of Aixintang Pharmacies’ products sold in China are eligible for the PRC VAT of 0% as it qualifies as a small business. Manufacture and Sale The Company’s new subsidiary Runcangsheng recognizes revenue at the time products are shipped as this satisfies its performance obligations. The Company records a receivable for the sales when it has an unconditional right to receive payment and only the passage of time is required before payment is due. Sales revenue represents the invoiced value of goods, net of value-added taxes (“VAT”). All of the Company’s products sold in China are subject to the PRC VAT of 13% unless it is a qualified small subject to exemption. | Revenue Recognition ASU No. 2014-09 Revenue from Contracts with Customers Topic 606. Topic 605, Revenue Recognition Revenue from sale of goods under Topic 606 ● executed contract(s) with customers that the Company believes is legally enforceable; ● identification of performance obligation in the respective contract; ● determination of the transaction price for each performance obligation in the respective contract; ● allocation of the transaction price to each performance obligation; and ● recognition of revenue only when the Company satisfies each performance obligation. The Company’s revenue recognition policies for its various operating segments are as follows: Advertising and Products Advertising Revenue Commencing in the third quarter of 2019, AiXin Zhonghong began to provide advertising services to its clients. Advertising contracts are signed to establish the price and advertising services to be provided. Pursuant to the advertising contracts, the Company provides advertising and marketing services to its clients through exhibition events, conferences, and person-to-person marketing. The Company performs a credit assessment of the customer to assess the collectability of the contract price prior to entering into contracts. Most of the advertisement contracts designated that the Company perform such advertising services for its clients through exhibition events, conferences, and person-to-person marketing during the contracted period, regardless of the number of such events. As such, the Company determined that the performance obligation is satisfied over time during the contracted period and revenue is recognized accordingly. Such advertising revenue amounted to $ 1,944,811 1,863,785 A smaller proportion of the Company’s advertising revenue is generated from services to its clients through exhibition events, conferences, and person-to-person marketing, and charges based on the number of promotional products sold. Such advertising revenue amounted to $ 0 and $ 6,558 for the years ended December 31, 2021 and 2020, respectively. All of the advertising revenue is subject to the PRC VAT of 6 Products Revenue The Company’s revenue from sale of products is recognized when goods are delivered to the customer and no other obligation exists. The Company does not provide unconditional return or other concessions to the customer. The Company’s sales policy allows for the return of unopened products for cash after deducting certain service and transaction fees. As an alternative to the product return option, the customers have options of asking for an exchange for products with the same value. Sales revenue of AiXin Zhonghong represents the invoiced value of goods, net of value-added taxes (“VAT”). All of the Company’s products sold in China are subject to the PRC VAT of 13 Hotel Hotel revenues are primarily derived from the rental of rooms, food and beverage sales and other ancillary goods and services, including but not limited to souvenir, parking and conference reservation. Each of these products and services represents a distinct performance obligation and, in exchange for these services, the Company receives fixed amounts based on published rates or negotiated contracts. Payment is due in full at the time when the services are rendered or the goods are provided. Room rental revenue is recognized on a daily basis when rooms are occupied. Food and beverage revenue and other goods and services revenue are recognized when they have been delivered or rendered to the guests as the respective performance obligations are satisfied. All of the hotel’s goods sold in China are subject to the PRC VAT of 6 Pharmacies The Company’s retail drugstores (Aixintang Pharmacies) recognize revenue at the time the customer takes possession of the merchandise. For pharmacy sales, each prescription claim is its own arrangement with the customer and is a performance obligation. Aixintang Pharmacies generally receives payments from customers as it satisfies its performance obligations. The Company records a receivable when it has an unconditional right to receive payment and only the passage of time is required before payment is due. Sales revenue represents the invoiced value of goods, net of VAT. All of Aixintang Pharmacies’ products sold in China are eligible for the PRC VAT of 0 |
Unearned Revenue | Unearned Revenue The Company’s unearned revenue primarily consists of advances received from customers for the rental of hotel rooms prior to the delivery of service. The room rental services are delivered (normally within one year) based upon contract terms and customer demand. | Unearned Revenue The Company’s unearned revenue primarily consists of advances received from customers for the rental of hotel rooms prior to the delivery of service. The room rental services are delivered (normally within one year) based upon contract terms and customer demand. |
Concentration of Credit Risk | Concentration of Credit Risk The operations of the Company are in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by the political, economic, and legal environments in the PRC, and by the general state of the PRC economy. The Company has cash on hand and demand deposits in accounts maintained with state-owned banks within the PRC. Cash in state-owned banks is covered by insurance up to RMB 500,000 72,500 During the three and nine months ended September 30, 2022, the Company had no customer that accounted for over 10% of its total revenue. During the three months ended September 30, 2021, the Company had two major customers that SCHEDULE OF CONCENTRATION OF RISK BY RISK FACTORS Customer Total revenue for the three months ended % of total revenue A(1) $ 146,140 18 % B 299,076 37 % During the nine months ended September 30, 2021, the Company had two major customers that Customer Total revenue for the nine % of total revenue A(1) $ 1,152,208 49 % B 590,688 25 % During the three months ended September 30, 2022, the Company had one major supplier that accounted for over 10% of its total purchases. Supplier Net purchases for the % of total purchase C(2) $ 88,948 35 % During the nine months ended September 30, 2022, the Company had one major supplier that accounted for over 10% of its total purchases. Supplier Net purchases for the % of total purchase C(2) $ 152,629 20 % During the three months ended September 30, 2021, the Company had no supplier that accounted for over 10% of its total purchase. During the nine months ended September 30, 2021, the Company had one major supplier accounted for over 10% of its total purchase. Supplier Net purchases for the % of total purchase D $ 232,584 69 % (1) Represented advertising revenues from this customer during the three and nine months ended September 30, 2021. The Company also purchased inventory from this customer in the three and nine months ended September 30, 2021. (2) The Company purchased inventory from this supplier, Runcansheng, in the three and nine months ended September 30, 2022. The Company acquired all of the outstanding equity of Runcangsheng on September 30, 2022 (see Note 17). | Concentration of Credit Risk The operations of the Company are in the PRC. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by the political, economic, and legal environments in the PRC, and by the general state of the PRC economy. The Company has cash on hand and demand deposits in accounts maintained with state-owned banks within the PRC. Cash in state-owned banks is covered by insurance up to RMB 500,000 72,500 During the year ended December 31, 2021, the Company had two major customers that accounted for over 10% of its total revenue. SCHEDULE OF CONCENTRATION OF RISK BY RISK FACTORS Customer Net sales for the % of total revenue A* $ 1,286,792 42 % B 658,018 21 % During the year ended December 31, 2020, the Company had one major customer that accounted for over 10% of its total revenue. Customer Net sales for the % of total revenue A* $ 1,863,785 76 % During the year ended December 31, 2021, the Company had one major supplier that accounted for over 10% of its total purchases. Supplier Net purchases for the year ended % of total purchase C $ 233,187 40 % During the year ended December 31, 2020, the Company had three major suppliers that accounted for over 10% of its total purchases. Supplier Net purchase for the year ended % of total purchase A* $ 110,037 55 % D 27,225 14 % E 20,000 10 % * Represented advertising revenues from this customer during the years ended December 31, 2021 and 2020. The Company also purchased inventory from this customer during the years ended December 31, 2021 and 2020. |
Leases | Leases The Company determines if an arrangement is a lease at inception under FASB ASC Topic 842, Right of Use Assets (“ROU”) and lease liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement. As most of its leases do not provide an implicit rate, it uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company’s incremental borrowing rate is a hypothetical rate based on its understanding of what its credit rating would be. The ROU assets include adjustments for prepayments and accrued lease payments. The ROU asset also includes any lease payments made prior to commencement and is recorded net of any lease incentives received. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise such options. ROU assets are reviewed for impairment when indicators of impairment are present. ROU assets from operating and finance leases are subject to the impairment guidance in ASC 360, Property, Plant, and Equipment, as ROU assets are long-lived nonfinancial assets. ROU assets are tested for impairment individually or as part of an asset group if the cash flows related to the ROU asset are not independent from the cash flows of other assets and liabilities. An asset group is the unit of accounting for long-lived assets to be held and used, which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. The Company recognized no impairment of ROU assets as of September 30, 2022 and December 31, 2021. Operating leases are included in operating lease ROU and operating lease liabilities (current and non-current), on the consolidated balance sheets. | Leases The Company adopted FASB Accounting Standards Codification, Topic 842, Leases (“ASC 842”) using the modified retrospective approach, electing the practical expedient that allows the Company not to restate prior to the adoption of the standard on January 1, 2019. The Company applied the following practical expedients in the transition to the new standard allowed under ASC 842: Practical Expedient Description Reassessment of expired or existing contracts The Company elected not to reassess, at the application date, whether any expired or existing contracts contained leases, the lease classification for any expired or existing leases, and the accounting for initial direct costs for any existing leases. Use of hindsight The Company elected to use hindsight in determining the lease term (that is, when considering options to extend or terminate the lease and to purchase the underlying asset) and in assessing impairment of right-to-use assets. Reassessment of existing or expired land easements The Company elected not to evaluate existing or expired land easements that were not previously accounted for as leases under ASC 840, as allowed under the transition practical expedient. Going forward, new or modified land easements will be evaluated under ASU No. 2016-02. Separation of lease and non-lease components Lease agreements that contain both lease and non-lease components are generally accounted for separately. Short-term lease recognition exemption The Company also elected the short-term lease recognition exemption and will not recognize ROU assets or lease liabilities for leases with a term less than 12 months. The Company determines if an arrangement is a lease at inception under FASB ASC Topic 842, Right of Use Assets (“ROU”) and lease liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement. As most of its leases do not provide an implicit rate, it uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company’s incremental borrowing rate is a hypothetical rate based on its understanding of what its credit rating would be. The ROU assets include adjustments for prepayments and accrued lease payments. The ROU asset also includes any lease payments made prior to commencement and is recorded net of any lease incentives received. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise such options. ROU assets are reviewed for impairment when indicators of impairment are present. ROU assets from operating and finance leases are subject to the impairment guidance in ASC 360, Property, Plant, and Equipment, as ROU assets are long-lived nonfinancial assets. ROU assets are tested for impairment individually or as part of an asset group if the cash flows related to the ROU asset are not independent from the cash flows of other assets and liabilities. An asset group is the unit of accounting for long-lived assets to be held and used, which represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. The Company recognized no impairment of ROU assets as of December 31, 2021 and 2020. Operating leases are included in operating lease ROU and operating lease liabilities (current and non-current), on the consolidated balance sheets. |
Statement of Cash Flows | Statement of Cash Flows In accordance with ASC Topic 230, “Statement of Cash Flows,” | Statement of Cash Flows In accordance with ASC Topic 230, “Statement of Cash Flows,” |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of certain of the Company’s financial instruments, including cash and equivalents, accrued liabilities and accounts payable, approximate their fair value due to their short maturities. FASB ASC Topic 825, “Financial Instruments,” requires disclosure of the fair value of financial instruments held by the Company. The carrying amounts reported in the consolidated balance sheets for current liabilities each qualify as financial instruments and are a reasonable estimate of their fair value because of the short period of time between the origination of such instruments and their expected realization and the current market rate of interest. | Fair Value of Financial Instruments The carrying amounts of certain of the Company’s financial instruments, including cash and equivalents, accrued liabilities and accounts payable, approximate their fair value due to their short maturities. FASB ASC Topic 825, “Financial Instruments,” requires disclosure of the fair value of financial instruments held by the Company. The carrying amounts reported in the consolidated balance sheets for current liabilities each qualify as financial instruments and are a reasonable estimate of their fair value because of the short period of time between the origination of such instruments and their expected realization and the current market rate of interest. |
Fair Value Measurements and Disclosures | Fair Value Measurements and Disclosures ASC Topic 820, “Fair Value Measurements and Disclosures,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The three levels are defined as follow: ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. As of September 30, 2022 and December 31, 2021, the Company did not identify any assets and liabilities that are required to be presented on the balance sheet at fair value. | Fair Value Measurements and Disclosures ASC Topic 820, “Fair Value Measurements and Disclosures,” defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The three levels are defined as follow: ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. As of December 31, 2021 and 2020, the Company did not identify any assets and liabilities that are required to be presented on the balance sheet at fair value. |
Foreign Currency Translation and Comprehensive Income (Loss) | Foreign Currency Translation and Comprehensive Income (Loss) The functional currency of the Company is RMB. For financial reporting purposes, RMB is translated into USD as the reporting currency. Assets and liabilities are translated at the exchange rate in effect at the balance sheet dates. Revenues and expenses are translated at the average rate of exchange prevailing during the reporting period. Translation adjustments arising from the use of different exchange rates from period to period are included as a component of stockholders’ equity as “Accumulated other comprehensive income”. Gains and losses resulting from foreign currency transactions are included in income. There was no significant fluctuation in the exchange rate for the conversion of RMB to USD after the balance sheet date. The Company uses FASB ASC Topic 220, “Comprehensive Income”. Comprehensive loss is comprised of net loss and all changes to the statements of stockholders’ equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. Comprehensive income (loss) for the three and nine months ended September 30, 2022 and 2021 consisted of net income (loss) and foreign currency translation adjustments. | Foreign Currency Translation and Comprehensive Income (Loss) The functional currency of the Company is RMB. For financial reporting purposes, RMB is translated into USD as the reporting currency. Assets and liabilities are translated at the exchange rate in effect at the balance sheet dates. Revenues and expenses are translated at the average rate of exchange prevailing during the reporting period. Translation adjustments arising from the use of different exchange rates from period to period are included as a component of stockholders’ equity as “Accumulated other comprehensive income”. Gains and losses resulting from foreign currency transactions are included in income. There was no significant fluctuation in the exchange rate for the conversion of RMB to USD after the balance sheet date. The Company uses FASB ASC Topic 220, “Comprehensive Income”. Comprehensive loss is comprised of net loss and all changes to the statements of stockholders’ equity, except those due to investments by stockholders, changes in paid-in capital and distributions to stockholders. Comprehensive income (loss) for the year ended December 31, 2021 and 2020 consisted of net income (loss) and foreign currency translation adjustments. |
Earnings per Share | Earnings per Share Basic income (loss) per share is computed on the basis of the weighted average number of common shares outstanding during the period. Dilution is computed by applying the treasury stock method for options and warrants. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. As of September 30, 2022 and December 31, 2021, the Company did not have any potentially dilutive instruments. | Earnings per Share Basic income (loss) per share is computed on the basis of the weighted average number of common shares outstanding during the period. Dilution is computed by applying the treasury stock method for options and warrants. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. As of December 31, 2021 and 2020, the Company did no |
Stock-Based Compensation | Stock-Based Compensation The Company periodically grants stock options, warrants and stock | Stock-Based Compensation The Company periodically grants stock options, warrants and awards to employees and non-employees in non-capital raising transactions as compensation for services rendered. The Company accounts for stock option, stock warrant and stock award grants to employees based on the authoritative guidance provided by the FASB where the value of the award is measured on the date of grant and recognized over the vesting period. The Company accounts for stock option, stock warrant and stock award grants to non-employees in accordance with the authoritative guidance of the FASB where the value of the stock compensation is determined based upon the measurement date at either a) the date at which a performance commitment is reached, or b) at the date at which the necessary performance to earn the equity instruments is complete. Stock-based compensation charges generally are amortized over the vesting period on a straight-line basis. In certain circumstances where there are no future performance requirements by the employees and non-employees, option, warrant and award grants are immediately vested and the total stock-based compensation charge is recorded in the period of the measurement date. |
Segment Reporting | Segment Reporting ASC Topic 280, “Segment Reporting,” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s chief operating decision maker organizes segments within the Company for making operating decisions assessing performance and allocating resources. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. The Company manages its business as four , and manufacture and sale The following table shows the Company’s operations by business segment for the three months ended September 30, 2022 and 2021. Revenues and expenses for the Pharmacies and Hotel segments commenced as of the respective dates of the completion of their acquisitions: SCHEDULE OF INFORMATION SEGMENTS For the Three Months Ended September 30, 2022 2021 Net revenue Advertising and products $ 338,327 $ 509,861 Pharmacies 164,735 139,947 Hotel 169,724 163,102 Total revenues, net $ 672,786 $ 812,910 Operating costs and expenses Advertising and products Cost of goods sold $ 90,391 $ 38,461 Operating expenses 301,624 267,331 Pharmacies Cost of goods sold 124,992 92,477 Operating expenses 144,164 124,138 Hotel Hotel operating costs 404,322 320,305 Operating expenses 141,197 63,707 Total operating costs and expenses $ 1,206,690 $ 906,419 (Loss) income from operations Advertising and products $ (53,688 ) $ 204,069 Pharmacies (104,421 ) (76,668 ) Hotel (375,795 ) (220,910 ) (Loss) income from operations $ (533,904 ) $ (93,509 ) The following table shows the Company’s operations by business segment for the nine months ended September 30, 2022 and 2021. Revenues and expenses for the Pharmacies and Hotel segments commenced as of the respective dates of the completion of their acquisitions: For the Nine Months Ended September 30, 2022 2021 Net revenue Advertising and products $ 371,016 $ 2,060,787 Pharmacies 517,674 139,947 Hotel 623,661 163,102 Total revenues, net $ 1,512,351 $ 2,363,836 Operating costs and expenses Advertising and products Cost of goods sold $ 98,809 $ 199,141 Operating expenses 961,885 966,903 Pharmacies Cost of goods sold 395,096 92,477 Operating expenses 467,315 124,138 Hotel Hotel operating costs 1,334,041 320,305 Operating expenses 300,501 63,707 Total operating costs and expenses $ 3,557,647 $ 1,766,671 (Loss) income from operations Advertising and products $ (689,678 ) $ 894,743 Pharmacies (344,737 ) (76,668 ) Hotel (1,010,881 ) (220,910 ) (Loss) income from operations $ (2,045,296 ) $ 597,165 Segment assets As of As of Advertising and products $ 5,309,901 $ 8,914,211 Pharmacies 719,589 931,706 Hotel 1,108,839 1,814,429 Manufacture and sale 2,872,820 - Total assets $ 10,011,149 $ 11,660,346 As the acquisition of R u the and operating results of the manufacture and sale segment | Segment Reporting ASC Topic 280, “Segment Reporting,” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s chief operating decision maker organizes segments within the Company for making operating decisions assessing performance and allocating resources. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. The Company manages its business as three operating segments, advertising and products, pharmacies, and hotels, all of which are located in the PRC. All of its revenues are derived in the PRC. All long-lived assets are located in PRC. The following table shows the Company’s operations by business segment for the year ended December 31, 2021 and 2020. Revenues and expenses for the Pharmacies and Hotel segments commenced as of the respective dates of the completion of their acquisitions: SCHEDULE OF INFORMATION SEGMENTS 2021 2020 Net revenue Advertising and products $ 2,406,988 $ 2,451,055 Pharmacies 280,447 - Hotel 378,798 - Total revenues, net $ 3,066,233 $ 2,451,055 Operating costs and expenses Advertising and products Cost of goods sold $ 316,750 $ 224,675 Operating expenses 1,344,543 1,431,920 Pharmacies Cost of goods sold 218,735 - Operating expenses 252,513 - Hotel Hotel operating costs 744,594 - Operating expenses 216,036 - Total operating costs and expenses $ 3,093,171 $ 1,656,595 Income (loss) from operations Advertising and products $ 745,695 $ 794,460 Pharmacies (190,801 ) - Hotel (581,832 ) - Income (loss) from operations $ (26,938 ) $ 794,460 Segment assets As of As of Advertising and products $ 8,914,211 $ 8,093,818 Pharmacies 931,706 - Hotel 1,814,429 - Total assets $ 11,660,346 $ 8,093,818 |
New Accounting Pronouncements | New Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact that the standard will have on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470- 20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. This ASU (1) simplifies the accounting for convertible debt instruments and convertible preferred stock by removing the existing guidance in ASC 470-20, Debt: Debt with Conversion and Other Options, that requires entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible debt or preferred stock; (2) revises the scope exception from derivative accounting in ASC 815-40 for freestanding financial instruments and embedded features that are both indexed to the issuer’s own stock and classified in stockholders’ equity, by removing certain criteria required for equity classification; and (3) revises the guidance in ASC 260, Earnings Per Share, to require entities to calculate diluted earnings per share (EPS) for convertible instruments by using the if-converted method. In addition, entities must presume share settlement for purposes of calculating diluted EPS when an instrument may be settled in cash or shares. For SEC filers, excluding smaller reporting companies, ASU 2020-06 is effective for fiscal years beginning after December 15, 2021 including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. For all other entities, ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Entities should adopt the guidance as of the beginning of the fiscal year of adoption and cannot adopt the guidance in an interim reporting period. The adoption of ASU 2020-06 is not expected to have any impact on the Company’s consolidated financial statements presentation or disclosures. The Company’s management does not believe that any other recently issued, but not yet effective, authoritative guidance, if currently adopted, would have a material impact on the Company’s financial statement presentation or disclosures. | New Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact that the standard will have on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its FV, not to exceed the carrying amount of goodwill. The guidance should be adopted on a prospective basis. As a smaller reporting company, the standard will be effective for the Company for interim and annual reporting periods beginning after December 15, 2022, with early adoption permitted. The Company is currently evaluating the impact of adopting this standard on the Company’s consolidated financial statements presentation or disclosures. In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470- 20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. This ASU (1) simplifies the accounting for convertible debt instruments and convertible preferred stock by removing the existing guidance in ASC 470-20, Debt: Debt with Conversion and Other Options, that requires entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible debt or preferred stock; (2) revises the scope exception from derivative accounting in ASC 815-40 for freestanding financial instruments and embedded features that are both indexed to the issuer’s own stock and classified in stockholders’ equity, by removing certain criteria required for equity classification; and (3) revises the guidance in ASC 260, Earnings Per Share, to require entities to calculate diluted earnings per share (EPS) for convertible instruments by using the if-converted method. In addition, entities must presume share settlement for purposes of calculating diluted EPS when an instrument may be settled in cash or shares. For SEC filers, excluding smaller reporting companies, ASU 2020-06 is effective for fiscal years beginning after December 15, 2021 including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. For all other entities, ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Entities should adopt the guidance as of the beginning of the fiscal year of adoption and cannot adopt the guidance in an interim reporting period. The adoption of ASU 2020-06 is not expected to have any impact on the Company’s consolidated financial statements presentation or disclosures. In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt — Modifications and Extinguishments (Subtopic 470-50), Compensation — Stock Compensation (Topic 718), and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options (“ASU 2021-04”). ASU 2021-04 provides guidance as to how an issuer should account for a modification of the terms or conditions or an exchange of a freestanding equity-classified written call option (i.e., a warrant) that remains classified after modification or exchange as an exchange of the original instrument for a new instrument. An issuer should measure the effect of a modification or exchange as the difference between the fair value of the modified or exchanged warrant and the fair value of that warrant immediately before modification or exchange and then apply a recognition model that comprises four categories of transactions and the corresponding accounting treatment for each category (equity issuance, debt origination, debt modification, and modifications unrelated to equity issuance and debt origination or modification). ASU 2021-04 is effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. An entity should apply the guidance provided in ASU 2021-04 prospectively to modifications or exchanges occurring on or after the effective date. Early adoption is permitted for all entities, including adoption in an interim period. If an entity elects to early adopt ASU 2021-04 in an interim period, the guidance should be applied as of the beginning of the fiscal year that includes that interim period. The adoption of ASU 2021-04 is not expected to have any impact on the Company’s consolidated financial statements presentation or disclosures. The Company’s management does not believe that any other recently issued, but not yet effective, authoritative guidance, if currently adopted, would have a material impact on the Company’s financial statement presentation or disclosures. |
Unaudited Interim Financial Information | Unaudited Interim Financial Information These unaudited interim financial statements have been prepared in accordance with GAAP for interim financial reporting and the rules and regulations of the Securities and Exchange Commission that permit reduced disclosure for interim periods. Therefore, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. In the opinion of management, all adjustments of a normal recurring nature necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented have been made. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the year ending December 31, 2022. The balance sheets and certain comparative information as of December 31, 2021 are derived from the audited financial statements and related notes for the year ended December 31, 2021, included in the Company’s 2021 Annual Report on Form 10-K. These unaudited interim financial statements should be read in conjunction with the annual consolidated financial statements and the accompanying notes contained in our Annual Report on Form 10-K for the year ended December 31, 2021. | |
Goodwill | Goodwill The Company evaluates goodwill for impairment annually or more frequently when an event occurs or circumstances change that indicate the carrying value may not be recoverable. In testing goodwill for impairment, the Company may elect to utilize a qualitative assessment to evaluate whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment indicates that goodwill impairment is more likely than not, the Company performs a two-step impairment test. The Company tests goodwill for impairment under the two-step impairment test by first comparing the book value of net assets to the fair value of the reporting units. If the fair value is determined to be less than the book value or qualitative factors indicate that it is more likely than not that goodwill is impaired, a second step is performed to compute the amount of impairment as the difference between the estimated fair value of goodwill and the carrying value. The Company estimates the fair value of the reporting units using discounted cash flows. Forecasts of future cash flows are based on our best estimate of future net sales and operating expenses, based primarily on expected category expansion, pricing, market segment share, and general economic conditions. The Company completed the required testing of goodwill for impairment as of September 30, 2022, and determined that goodwill was impaired because of the current financial condition of the Company and the Company’s inability to generate future operating income without substantial sales volume increases, which are highly uncertain. Furthermore, the Company anticipates future cash flows indicate that the recoverability of goodwill is not reasonably assured. The goodwill write-down was reflected as a impairment loss, $ 3,823,770 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||
SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED LIVES | SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED LIVES Office furniture 5 Electronic equipment 2 3 Machinery 3 Leasehold improvements 3 Vehicles 5 | SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED LIVES Office furniture 5 Electronic equipment 2 3 Machinery 3 Leasehold improvements 3 Vehicles 5 |
SCHEDULE OF CONCENTRATION OF RISK BY RISK FACTORS | During the three months ended September 30, 2021, the Company had two major customers that SCHEDULE OF CONCENTRATION OF RISK BY RISK FACTORS Customer Total revenue for the three months ended % of total revenue A(1) $ 146,140 18 % B 299,076 37 % During the nine months ended September 30, 2021, the Company had two major customers that Customer Total revenue for the nine % of total revenue A(1) $ 1,152,208 49 % B 590,688 25 % During the three months ended September 30, 2022, the Company had one major supplier that accounted for over 10% of its total purchases. Supplier Net purchases for the % of total purchase C(2) $ 88,948 35 % During the nine months ended September 30, 2022, the Company had one major supplier that accounted for over 10% of its total purchases. Supplier Net purchases for the % of total purchase C(2) $ 152,629 20 % During the three months ended September 30, 2021, the Company had no supplier that accounted for over 10% of its total purchase. During the nine months ended September 30, 2021, the Company had one major supplier accounted for over 10% of its total purchase. Supplier Net purchases for the % of total purchase D $ 232,584 69 % (1) Represented advertising revenues from this customer during the three and nine months ended September 30, 2021. The Company also purchased inventory from this customer in the three and nine months ended September 30, 2021. (2) The Company purchased inventory from this supplier, Runcansheng, in the three and nine months ended September 30, 2022. The Company acquired all of the outstanding equity of Runcangsheng on September 30, 2022 (see Note 17). | During the year ended December 31, 2021, the Company had two major customers that accounted for over 10% of its total revenue. SCHEDULE OF CONCENTRATION OF RISK BY RISK FACTORS Customer Net sales for the % of total revenue A* $ 1,286,792 42 % B 658,018 21 % During the year ended December 31, 2020, the Company had one major customer that accounted for over 10% of its total revenue. Customer Net sales for the % of total revenue A* $ 1,863,785 76 % During the year ended December 31, 2021, the Company had one major supplier that accounted for over 10% of its total purchases. Supplier Net purchases for the year ended % of total purchase C $ 233,187 40 % During the year ended December 31, 2020, the Company had three major suppliers that accounted for over 10% of its total purchases. Supplier Net purchase for the year ended % of total purchase A* $ 110,037 55 % D 27,225 14 % E 20,000 10 % * Represented advertising revenues from this customer during the years ended December 31, 2021 and 2020. The Company also purchased inventory from this customer during the years ended December 31, 2021 and 2020. |
SCHEDULE OF INFORMATION SEGMENTS | The following table shows the Company’s operations by business segment for the three months ended September 30, 2022 and 2021. Revenues and expenses for the Pharmacies and Hotel segments commenced as of the respective dates of the completion of their acquisitions: SCHEDULE OF INFORMATION SEGMENTS For the Three Months Ended September 30, 2022 2021 Net revenue Advertising and products $ 338,327 $ 509,861 Pharmacies 164,735 139,947 Hotel 169,724 163,102 Total revenues, net $ 672,786 $ 812,910 Operating costs and expenses Advertising and products Cost of goods sold $ 90,391 $ 38,461 Operating expenses 301,624 267,331 Pharmacies Cost of goods sold 124,992 92,477 Operating expenses 144,164 124,138 Hotel Hotel operating costs 404,322 320,305 Operating expenses 141,197 63,707 Total operating costs and expenses $ 1,206,690 $ 906,419 (Loss) income from operations Advertising and products $ (53,688 ) $ 204,069 Pharmacies (104,421 ) (76,668 ) Hotel (375,795 ) (220,910 ) (Loss) income from operations $ (533,904 ) $ (93,509 ) The following table shows the Company’s operations by business segment for the nine months ended September 30, 2022 and 2021. Revenues and expenses for the Pharmacies and Hotel segments commenced as of the respective dates of the completion of their acquisitions: For the Nine Months Ended September 30, 2022 2021 Net revenue Advertising and products $ 371,016 $ 2,060,787 Pharmacies 517,674 139,947 Hotel 623,661 163,102 Total revenues, net $ 1,512,351 $ 2,363,836 Operating costs and expenses Advertising and products Cost of goods sold $ 98,809 $ 199,141 Operating expenses 961,885 966,903 Pharmacies Cost of goods sold 395,096 92,477 Operating expenses 467,315 124,138 Hotel Hotel operating costs 1,334,041 320,305 Operating expenses 300,501 63,707 Total operating costs and expenses $ 3,557,647 $ 1,766,671 (Loss) income from operations Advertising and products $ (689,678 ) $ 894,743 Pharmacies (344,737 ) (76,668 ) Hotel (1,010,881 ) (220,910 ) (Loss) income from operations $ (2,045,296 ) $ 597,165 Segment assets As of As of Advertising and products $ 5,309,901 $ 8,914,211 Pharmacies 719,589 931,706 Hotel 1,108,839 1,814,429 Manufacture and sale 2,872,820 - Total assets $ 10,011,149 $ 11,660,346 | The following table shows the Company’s operations by business segment for the year ended December 31, 2021 and 2020. Revenues and expenses for the Pharmacies and Hotel segments commenced as of the respective dates of the completion of their acquisitions: SCHEDULE OF INFORMATION SEGMENTS 2021 2020 Net revenue Advertising and products $ 2,406,988 $ 2,451,055 Pharmacies 280,447 - Hotel 378,798 - Total revenues, net $ 3,066,233 $ 2,451,055 Operating costs and expenses Advertising and products Cost of goods sold $ 316,750 $ 224,675 Operating expenses 1,344,543 1,431,920 Pharmacies Cost of goods sold 218,735 - Operating expenses 252,513 - Hotel Hotel operating costs 744,594 - Operating expenses 216,036 - Total operating costs and expenses $ 3,093,171 $ 1,656,595 Income (loss) from operations Advertising and products $ 745,695 $ 794,460 Pharmacies (190,801 ) - Hotel (581,832 ) - Income (loss) from operations $ (26,938 ) $ 794,460 Segment assets As of As of Advertising and products $ 8,914,211 $ 8,093,818 Pharmacies 931,706 - Hotel 1,814,429 - Total assets $ 11,660,346 $ 8,093,818 |
OTHER RECEIVABLES AND PREPAID_2
OTHER RECEIVABLES AND PREPAID EXPENSES (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Receivables [Abstract] | ||
SCHEDULE OF OTHER RECEIVABLES AND PREPAID EXPENSES | Other receivables and prepaid expenses consisted of the following at September 30, 2022 and December 31, 2021: SCHEDULE OF OTHER RECEIVABLES AND PREPAID EXPENSES September 30, 2022 December 31, 2021 Deposits $ 14,928 $ 68,433 Prepaid expenses 122,150 50,221 Employees’ social insurance 10,584 13,839 Others 14,978 10,788 Total $ 162,640 $ 143,281 | Other receivables and prepaid expenses consisted of the following at December 31, 2021 and 2020: SCHEDULE OF OTHER RECEIVABLES AND PREPAID EXPENSES December 31, 2021 December 31, 2020 Deposits $ 68,433 $ 6,624 Prepaid expenses 50,221 12,884 Employees’ social insurance 13,839 7,562 Others 10,788 5,253 Total $ 143,281 $ 32,323 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | ||
SCHEDULE OF INVENTORIES | Inventories consisted of the following at September 30, 2022 and December 31, 2021: SCHEDULE OF INVENTORIES September 30, 2022 December 31, 2021 Raw material $ 152,140 $ - Work in process 4,600 - Finished goods-health supplements 183,148 6,201 Drugs, pharmaceutical and nutritional products 454,165 122,966 Food and beverage, hotel supplies and consumables 83,342 104,287 Total $ 877,395 $ 233,454 Less: inventory allowance 19,641 - Total inventories, net $ 857,754 $ 233,454 | Inventories consisted of the following at December 31, 2021 and 2020: SCHEDULE OF INVENTORIES December 31, 2021 December 31, 2020 Raw material Work in process Finished goods – health supplements $ 6,201 $ 45,535 Drugs, pharmaceutical and nutritional products 122,966 - Food and beverage, hotel supplies and consumables 104,287 - Total $ 233,454 $ 45,535 Less: inventory allowance Total inventories, net 233,454 45,535 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
SCHEDULE OF PROPERTY AND EQUIPMENT | Property and equipment consisted of the following at September 30, 2022 and December 31, 2021: SCHEDULE OF PROPERTY AND EQUIPMENT September 30, 2022 December 31, 2021 Vehicles $ 413,857 $ 295,502 Office furniture 80,039 64,263 Electronic equipment 19,980 22,304 Machinery 1,104,495 106,080 Leasehold improvements 1,104,450 256,548 Other 16,955 6,374 Total 2,739,776 751,071 Less: Accumulated depreciation (829,085 ) (460,923 ) Property and equipment, net $ 1,910,691 $ 290,148 | Property and equipment consisted of the following at December 31, 2021 and 2020: SCHEDULE OF PROPERTY AND EQUIPMENT December 31, 2021 December 31, 2020 Vehicles $ 295,502 $ 288,604 Office furniture 64,263 48,464 Electronic equipment 22,304 14,852 Machinery 106,080 - Leasehold improvements 256,548 - Other 6,374 - Total 751,071 351,920 Less: Accumulated depreciation (460,923 ) (284,103 ) Property and equipment, net $ 290,148 $ 67,817 |
INTANGIBLE ASSET, NET (Tables)
INTANGIBLE ASSET, NET (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
SCHEDULE OF INTANGIBLE ASSET | Intangible asset consisted of the following at September 30, 2022 and December 31, 2021: SCHEDULE OF INTANGIBLE ASSET September 30, 2022 December 31, 2021 Software $ 8,479 $ 7,896 Less: Accumulated amortization (7,086 ) (5,956 ) Intangible asset, net $ 1,393 $ 1,940 | Intangible asset consisted of the following at December 31, 2021 and 2020: SCHEDULE OF INTANGIBLE ASSET December 31, 2021 December 31, 2020 Software $ 7,896 $ - Less: Accumulated amortization (5,956 ) - Intangible asset, net $ 1,940 $ - |
TAXES PAYABLE (Tables)
TAXES PAYABLE (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Taxes Payable | ||
SCHEDULE OF TAX PAYABLE | Taxes payable consisted of the following at September 30, 2022 and December 31, 2021: SCHEDULE OF TAX PAYABLE September 30, 2022 December 31, 2021 Value-added $ 12,979 $ 97,917 Income 29,979 109,396 City construction 1,760 7,018 Education 1,479 5,064 Other 9,745 13,242 Taxes payable $ 55,942 $ 232,637 | Taxes payable consisted of the following at December 31, 2021 and 2020: SCHEDULE OF TAX PAYABLE December 31, 2021 December 31, 2020 Value-added $ 97,917 $ 32,318 Income 109,396 235,300 City construction 7,018 2,422 Education 5,064 1,781 Other 13,242 11,674 Taxes payable $ 232,637 $ 283,495 |
ACCRUED LIABILITIES AND OTHER_2
ACCRUED LIABILITIES AND OTHER PAYABLES (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Payables and Accruals [Abstract] | ||
SCHEDULE OF ACCRUED LIABILITIES AND OTHER PAYABLES | Accrued liabilities and other payables consisted of the following at September 30, 2022 and December 31, 2021: SCHEDULE OF ACCRUED LIABILITIES AND OTHER PAYABLES September 30, 2022 December 31, 2021 Accrued employees’ social insurance $ 258,094 $ 327,735 Accrued payroll and commission 264,613 179,183 Accrued rent expense 11,625 29,000 Construction payable 1,463,969 111,807 Payable for equipment purchase 20,051 - Accrued professional fees 206,427 50,840 Deposit 11,668 12,239 Other payables 44,998 41,596 Acquisition payable (see Note 17) 3,622,293 - Total $ 5,903,738 $ 752,400 | Accrued liabilities and other payables consisted of the following at December 31, 2021 and 2020: SCHEDULE OF ACCRUED LIABILITIES AND OTHER PAYABLES December 31, 2021 December 31, 2020 Accrued employees’ social insurance $ 327,735 $ 364,870 Accrued payroll and commission 179,183 105,844 Accrued rent expense 29,000 - Construction payable 111,807 - Payable for equipment purchase Accrued professional fees 50,840 16,927 Deposit 12,239 - Other payables 41,596 26,598 Acquisition payable (see Note 17) Total $ 752,400 $ 514,239 |
LEASE (Tables)
LEASE (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Lease | ||
SCHEDULE OF OPERATING LEASE LIABILITIES | Balance sheet information related to the Company’s leases is presented below: SCHEDULE OF OPERATING LEASE LIABILITIES September 30, 2022 December 31, 2021 Operating Leases Operating lease right-of-use assets $ 1,173,616 $ 2,049,775 Operating lease liabilities – current $ 772,632 $ 848,230 Operating lease liability – non-current 382,152 1,138,710 Total operating lease liabilities $ 1,154,784 $ 1,986,940 | Balance sheet information related to the Company’s leases is presented below: SCHEDULE OF OPERATING LEASE LIABILITIES December 31, 2021 December 31, 2020 Operating Leases Operating lease right-of-use assets $ 2,049,775 $ 100,029 Operating lease liabilities – current $ 848,230 $ 70,780 Operating lease liability – non-current 1,138,710 29,250 Total operating lease liabilities $ 1,986,940 $ 100,030 |
SCHEDULE OF OTHER INFORMATION RELATED LEASES | The following provides details of the Company’s lease expenses: SCHEDULE OF OPERATING LEASE EXPENSES Three Months Ended September 30, 2022 2021 Operating lease expenses $ 183,051 $ 161,389 Nine Months Ended September 30, 2022 2021 Operating lease expenses $ 632,496 $ 217,642 Other information related to leases is presented below: SCHEDULE OF OTHER INFORMATION RELATED LEASES Nine Months Ended September 30, 2022 2021 Cash Paid For Amounts Included In Measurement of Liabilities: Operating cash flows from operating leases $ 525,979 $ 217,642 Weighted Average Remaining Lease Term: Operating leases 1.65 2.42 Weighted Average Discount Rate: Operating leases 4.75 % 4.75 % | The following provides details of the Company’s lease expenses: SCHEDULE OF OPERATING LEASE EXPENSES 2021 2020 Years Ended December 31, 2021 2020 Operating lease expenses $ 411,607 $ 151,730 |
SCHEDULE OF OTHER INFORMATION RELATED LEASES | Other information related to leases is presented below: SCHEDULE OF OTHER INFORMATION RELATED LEASES Nine Months Ended September 30, 2022 2021 Cash Paid For Amounts Included In Measurement of Liabilities: Operating cash flows from operating leases $ 525,979 $ 217,642 Weighted Average Remaining Lease Term: Operating leases 1.65 2.42 Weighted Average Discount Rate: Operating leases 4.75 % 4.75 % | Other information related to leases is presented below: SCHEDULE OF OTHER INFORMATION RELATED LEASES Years Ended December 31, 2021 2020 Cash Paid For Amounts Included In Measurement of Liabilities: Operating cash flows from operating leases $ 473,508 151,730 Weighted Average Remaining Lease Term: Operating leases 2.32 years 1.37 Weighted Average Discount Rate: Operating leases 4.75 % 4.75 % |
SCHEDULE OF MATURITIES OF LEASE LIABILITIES | Maturities of lease liabilities were as follows: SCHEDULE OF MATURITIES OF LEASE LIABILITIES For the year ending December 31: 2022 (excluding the nine months ended September 30, 2022) $ 215,864 2023 782,260 2024 123,488 2025 51,579 2026 21,751 Total lease payments 1,194,942 Less: imputed interest (40,158 ) Total lease liabilities 1,154,784 Less: current portion (772,632 ) Lease liabilities – non-current portion $ 382,152 | Maturities of lease liabilities were as follows: SCHEDULE OF MATURITIES OF LEASE LIABILITIES For the year ending December 31: 2022 (excluding the six months ended June 30, 2022) $ 2022 $ 912,635 2023 959,650 2024 142,251 2025 52,176 2026 24,280 Total lease payments 2,090,992 Less: imputed interest (104,052 ) Total lease liabilities 1,986,940 Less: current portion (848,230 ) Lease liabilities – non-current portion $ 1,138,710 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Related Party Transactions [Abstract] | ||
SCHEDULE OF RELATED PARTY TRANSACTIONS | Advance to related parties consisted of the following as of the periods indicated: SCHEDULE OF RELATED PARTY TRANSACTIONS September 30, 2022 December 31, 2021 Chengdu WenJiang Aixin Nanjiang Pharmacy Co., Ltd. $ 13,240 $ 4,583 Sichuan Aixin Investment Co., Ltd. 142 4,237 Chengdu Fuxiang Tang Pharmacy Co., Ltd. 27,250 - Chengdu Wenjiang district Heneng hupu Pharmacy Co., Ltd 40,222 - Chengdu Lisheng Huiren Tang Pharmacy Co., Ltd. 11,788 10,235 Total $ 92,642 $ 19,055 Advance to related parties 92,642 19,055 Advance from related parties Advance from related parties consisted of the following as of the periods indicated: September 30, 2022 December 31, 2021 Quanzhong Lin $ 619,359 $ 1,822,705 Yirong Shen 87,158 97,292 Branch manager - 1,667 Chengdu Aixin E-Commerce Company Ltd. 13,777 15,378 Chengdu Aixin International travel service Co, Ltd 6,356 2,388 Aixin Life Beauty - 7,724 Total $ 726,650 $ 1,947,154 Advance from related parties 726,650 1,947,154 | Advance to related parties SCHEDULE OF RELATED PARTY TRANSACTIONS Advance to related parties consisted of the following as of the periods indicated: December 31, 2021 December 31, 2020 Chengdu WenJiang Aixin Nanjiang Pharmacy Co., Ltd. $ 4,583 $ - Qionglai Weide Pharmacy - 10,421 Sichuan Aixin Investment Co., Ltd 4,237 - Chengdu Xindu Cundetang Pharmacy Co., Ltd. - 5,318 Chengdu Lisheng Huiren Tang Pharmacy Co., Ltd. 10,235 - Total $ 19,055 $ 15,739 Advance from related parties Advance from related parties consisted of the following as of the periods indicated: December 31, 2021 December 31, 2020 Quanzhong Lin $ 1,822,705 $ 258,862 Yirong Shen 97,292 - Branch manager 1,667 - Chengdu Aixin E-Commerce Company Ltd. 15,378 3,240 Chengdu Aixin International travel service Co, Ltd 2,388 - Chengdu Beibang Pharmacy - 2,748 Aixin Life Beauty 7,724 - Total $ 1,947,154 $ 264,850 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF COMPONENTS OF THE PROVISION FOR INCOME TAXES | The components of the provision for income taxes for the years ended December 31, 2021 and 2020 consisted of the following: SCHEDULE OF COMPONENTS OF THE PROVISION FOR INCOME TAXES 2021 2020 For the Year Ended December 31, 2021 2020 Current: China $ 292,891 $ 340,127 Total current 292,891 340,127 Deferred: China (18,570 ) - Total deferred (18,570 ) - Total income tax expense $ 274,321 $ 340,127 |
SCHEDULE OF DEFERRED TAX ASSETS | Deferred tax assets as of December 31, 2021 and 2020 consisted of the following: SCHEDULE OF DEFERRED TAX ASSETS December 31, 2021 December 31, 2010 Deferred tax assets: Accumulated amortization $ 18,795 $ - |
SCHEDULE OF EFFECTIVE INCOME TAX RATE | The following table reconciles the statutory rates to the Company’s effective tax rate for years ended December 31, 2021 and 2020: SCHEDULE OF EFFECTIVE INCOME TAX RATE 2021 2020 Statutory U.S. federal income tax rate 21.0 % 21.0 % Foreign tax rate differential 216.5 % 5.1 % Change in valuation allowances 3,634.4 % 5.7 % Other (1) (1) - % (6.7 )% Effective combined tax rate 3,871.9 % 25.1 % (1) Primarily consists of utilization of net operating losses in China |
ACQUISITIONS OF SUBSIDIARIES (T
ACQUISITIONS OF SUBSIDIARIES (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | ||
SCHEDULE OF BUSINESS ACQUISITION PRO FORMA | SCHEDULE OF BUSINESS ACQUISITION PRO FORMA For the Nine Months Ended September 30, 2022 Revenue $ 1,854,617 Operating costs and expenses 3,826,342 Loss from operations (1,971,725 ) Other income 25,313 Income tax expense 643 Net loss $ (1,947,055 ) For the Nine Months Ended September 30, 2021 Revenue $ 3,869,889 Operating costs and expenses 4,240,635 Loss from operations (370,746 ) Other income 82,950 Income tax expense 292,146 Net loss $ (579,942 ) | SCHEDULE OF BUSINESS ACQUISITION PRO FORMA 2021 2020 Revenue $ 4,241,991 $ 4,789,633 Operating costs and expenses 5,244,272 4,949,947 Loss from operations (1,002,281 ) (160,314 ) Other income (expense) 100,026 643,458 Income tax expense 274,321 340,155 Net income (loss) $ (1,176,576 ) $ 142,989 |
SCHEDULE OF FAIR VALUES OF THE ASSETS ACQUIRED AND LIABILITIES ASSUMED | The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition. Goodwill as a result of the acquisition of Runcangsheng is calculated as follows: SCHEDULE OF FAIR VALUES OF THE ASSETS ACQUIRED AND LIABILITIES ASSUMED Total purchase considerations $ 4,301,293 Estimated fair value of assets acquired: Cash $ 446,381 Accounts receivable 144,813 Accounts receivable-related party 133,011 Advance to suppliers 3,455 Other receivables and prepaid expense 127,909 Inventory 469,594 Property and equipment 1,677,272 Intangible assets 1,406 Operating lease right-of-use assets 1,990 Total assets acquired 3,005,831 Estimated fair value of liabilities assumed: Accounts payable (89,801 ) Accounts payable-related party (160,911 ) Advance from customers (4,790 ) Government grant (921,473 ) Taxes payable (21,156 ) Operating lease liability (15,182 ) Accrued liabilities and other payables (1,314,995 ) Total liabilities assumed (2,528,308 ) Total net assets acquired 477,523 Goodwill as a result of the acquisition $ 3,823,770 |
ORGANIZATION AND DESCRIPTION _2
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Narrative) | 9 Months Ended | 12 Months Ended | |||||||||||
Jul. 19, 2022 USD ($) | Jul. 18, 2022 | Jun. 02, 2021 USD ($) | Jun. 02, 2021 CNY (¥) | May 25, 2021 USD ($) | May 25, 2021 CNY (¥) | Dec. 12, 2017 shares | Feb. 02, 2017 USD ($) shares | Sep. 30, 2022 shares | Dec. 31, 2021 shares | Dec. 31, 2020 USD ($) shares | Dec. 31, 2020 CNY (¥) shares | Jun. 30, 2020 shares | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||
Entity state of incorporation | CO | CO | |||||||||||
Entity date of incorporation | Dec. 30, 1987 | Dec. 30, 1987 | |||||||||||
Common stock, shares outstanding | shares | 49,999,891 | 49,999,891 | 49,999,891 | 49,999,891 | |||||||||
Business combination, consideration transferred | $ | $ 4,301,293 | ||||||||||||
Quanzhong Lin [Member] | |||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||
Common stock, shares outstanding | shares | 35,049,685 | ||||||||||||
Stock issued during period, shares, new issues | shares | 56,838,151 | ||||||||||||
China Concentric [Member] | |||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||
Business combination, consideration transferred | $ | $ 300,000 | ||||||||||||
Aixin Shangyan Hotel Management [Member] | |||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||
Business combination, consideration transferred | $ 1,160,000 | ¥ 7,598,887 | $ 1,160,000 | ¥ 7,598,887 | |||||||||
Chengdu Aixintang Haichuan Pharmacy Co Ltd [Member] | |||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||
Business combination, consideration transferred | ¥ | ¥ 34,635,845 | ||||||||||||
Chengdu Aixintang Haichuan Pharmacy Co Ltd [Member] | Equity Transfer Agreement [Member] | |||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||
Business acquisition, description of acquired entity | On June 2, 2021, AiXin HK entered into an Equity Transfer Agreement with Chengdu Aixintang Haichuan Pharmacy Co., Ltd. (formerly Chengdu Aixintang Pharmacy Co., Ltd.) and certain affiliated entities, each of which operates a pharmacy (together, “Aixintang Pharmacies”) and its three shareholders, Quanzhong Lin, Ting Li and Xiao Ling Li (“Transferor”). Mr. Lin owned in excess of 95% of the outstanding equity the Aixintang Pharmacies. The remaining equity interest was owned by Ting Li and Xiao Ling Li | On June 2, 2021, AiXin HK entered into an Equity Transfer Agreement with Chengdu Aixintang Haichuan Pharmacy Co., Ltd. (formerly Chengdu Aixintang Pharmacy Co., Ltd.) and certain affiliated entities, each of which operates a pharmacy (together, “Aixintang Pharmacies”) and its three shareholders, Quanzhong Lin, Ting Li and Xiao Ling Li (“Transferor”). Mr. Lin owned in excess of 95% of the outstanding equity the Aixintang Pharmacies. The remaining equity interest was owned by Ting Li and Xiao Ling Li | |||||||||||
AiXintang Pharmacises [Member] | |||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||
Business combination, consideration transferred | $ 5,310,000 | ¥ 34,635,845 | $ 5,310,000 | 5,310,000 | ¥ 34,635,845 | ||||||||
Business combination, adjusted | $ | $ 116,802 | ||||||||||||
Chengdu Aixintang Pharmacy Co Ltd [Member] | Pharmacies Purchase Agreement [Member] | |||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||
Business acquisition, description of acquired entity | On June 2, 2021, AiXin HK entered into an Equity Transfer Agreement (the “Pharmacies Purchase Agreement”) with Chengdu Aixintang Haichuan Pharmacy Co., Ltd. (formerly Chengdu Aixintang Pharmacy Co., Ltd.) and certain affiliated entities, each of which operates a pharmacy (together, “Aixintang Pharmacies”) and its three shareholders, Quanzhong Lin, Ting Li and Xiao Ling Li (“Transferor”). Mr. Lin owned in excess of 95% of the outstanding equity the Aixintang Pharmacies. The remaining equity interest was owned by Ting Li and Xiao Ling Li. | On June 2, 2021, AiXin HK entered into an Equity Transfer Agreement (the “Pharmacies Purchase Agreement”) with Chengdu Aixintang Haichuan Pharmacy Co., Ltd. (formerly Chengdu Aixintang Pharmacy Co., Ltd.) and certain affiliated entities, each of which operates a pharmacy (together, “Aixintang Pharmacies”) and its three shareholders, Quanzhong Lin, Ting Li and Xiao Ling Li (“Transferor”). Mr. Lin owned in excess of 95% of the outstanding equity the Aixintang Pharmacies. The remaining equity interest was owned by Ting Li and Xiao Ling Li. | |||||||||||
Yunnan Shengshengyuan Technology Co Ltd [Member] | |||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||
Business combination, consideration transferred | $ 4,418,095 | ¥ 31,557,820 | |||||||||||
Business combination, adjusted | $ | $ 116,802 | ||||||||||||
Yunnan Shengshengyuan Technology Co Ltd [Member] | Transfer Agreement [Member] | |||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||
Business acquisition, description of acquired entity | On July 19, 2022, HK Aixin entered into an Equity Transfer Agreement with Yunnan Shengshengyuan Technology Co., Ltd, and Yun Chen (the “Sellers”), the shareholders of Yunnan Runcangsheng Technology Company Ltd. (“Runcangsheng”). Yunnan Shengshengyuan owns in excess of 95% of the outstanding equity | ||||||||||||
China Concentric [Member] | |||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||
Equity method investment, ownership percentage | 65% | ||||||||||||
Aixin Shangyan Hotel Management [Member] | Equity Transfer Agreement [Member] | |||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||
Equity method investment, ownership percentage | 100% | 100% | |||||||||||
Equity Transfer Agreement [Member] | Aixin Shangyan Hotel Management [Member] | |||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||
Equity method investment, ownership percentage | 100% | 100% | |||||||||||
China Concentric [Member] | |||||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||||
Common stock, shares outstanding | shares | 7,380,352 | ||||||||||||
Common stock percentage | 65% |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT ESTIMATED LIVES (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Office Furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 5 years | 5 years |
Electronic Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 2 years | 2 years |
Electronic Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 3 years | 3 years |
Machinery [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 3 years | 3 years |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 3 years | 3 years |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 5 years | 5 years |
SCHEDULE OF CONCENTRATION OF RI
SCHEDULE OF CONCENTRATION OF RISK BY RISK FACTORS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | ||||||||
Product Information [Line Items] | |||||||||||||
Total revenue | $ 672,786 | $ 812,910 | $ 1,512,351 | $ 2,363,836 | $ 3,066,233 | $ 2,451,055 | |||||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer A [Member] | |||||||||||||
Product Information [Line Items] | |||||||||||||
Total revenue | $ 146,140 | [1] | $ 1,152,208 | [1] | $ 1,286,792 | [2] | $ 1,863,785 | [2] | |||||
Concentration risk, percentage | 18% | [1] | 49% | [1] | 42% | [2] | 76% | [2] | |||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer B [Member] | |||||||||||||
Product Information [Line Items] | |||||||||||||
Total revenue | $ 299,076 | $ 590,688 | $ 658,018 | ||||||||||
Concentration risk, percentage | 37% | 25% | 21% | ||||||||||
Cost of Sales [Member] | Supplier Concentration Risk [Member] | Supplier C [Member] | |||||||||||||
Product Information [Line Items] | |||||||||||||
Concentration risk, percentage | 35% | [3] | 20% | [3] | 40% | ||||||||
Total purchases | $ 233,187 | ||||||||||||
Total purchases | [3] | $ 88,948 | $ 152,629 | ||||||||||
Cost of Sales [Member] | Supplier Concentration Risk [Member] | Supplier A [Member] | |||||||||||||
Product Information [Line Items] | |||||||||||||
Concentration risk, percentage | [2] | 55% | |||||||||||
Total purchases | [2] | $ 110,037 | |||||||||||
Cost of Sales [Member] | Supplier Concentration Risk [Member] | Supplier D [Member] | |||||||||||||
Product Information [Line Items] | |||||||||||||
Concentration risk, percentage | 69% | [3] | 14% | ||||||||||
Total purchases | $ 27,225 | ||||||||||||
Total purchases | [3] | $ 232,584 | |||||||||||
Cost of Sales [Member] | Supplier Concentration Risk [Member] | Supplier E [Member] | |||||||||||||
Product Information [Line Items] | |||||||||||||
Concentration risk, percentage | 10% | ||||||||||||
Total purchases | $ 20,000 | ||||||||||||
[1]Represented advertising revenues from this customer during the three and nine months ended September 30, 2021. The Company also purchased inventory from this customer in the three and nine months ended September 30, 2021.[2]Represented advertising revenues from this customer during the years ended December 31, 2021 and 2020. The Company also purchased inventory from this customer during the years ended December 31, 2021 and 2020.[3]The Company purchased inventory from this supplier, Runcansheng, in the three and nine months ended September 30, 2022. The Company acquired all of the outstanding equity of Runcangsheng on September 30, 2022 (see Note 17). |
SCHEDULE OF INFORMATION SEGMENT
SCHEDULE OF INFORMATION SEGMENTS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Product Information [Line Items] | ||||||
Total revenues, net | $ 672,786 | $ 812,910 | $ 1,512,351 | $ 2,363,836 | $ 3,066,233 | $ 2,451,055 |
Operating expenses | 1,206,690 | 906,419 | 3,557,647 | 1,766,671 | 3,093,171 | 1,656,595 |
Hotel operating costs | 404,322 | 320,305 | 1,334,041 | 320,305 | 744,594 | |
Total operating costs and expenses | 1,206,690 | 906,419 | 3,557,647 | 1,766,671 | 3,093,171 | 1,656,595 |
(Loss) income from operations | (533,904) | (93,509) | (2,045,296) | 597,165 | (26,938) | 794,460 |
Total assets | 10,011,149 | 10,011,149 | 11,660,346 | 8,093,818 | ||
Advertising and Product [Member] | ||||||
Product Information [Line Items] | ||||||
Total revenues, net | 338,327 | 509,861 | 371,016 | 2,060,787 | 2,406,988 | 2,451,055 |
Cost of goods sold | 90,391 | 38,461 | 98,809 | 199,141 | 316,750 | 224,675 |
Operating expenses | 301,624 | 267,331 | 961,885 | 966,903 | 1,344,543 | 1,431,920 |
(Loss) income from operations | (53,688) | 204,069 | (689,678) | 894,743 | 745,695 | 794,460 |
Total assets | 5,309,901 | 5,309,901 | 8,914,211 | 8,093,818 | ||
Pharmacies [Member] | ||||||
Product Information [Line Items] | ||||||
Total revenues, net | 164,735 | 139,947 | 517,674 | 139,947 | 280,447 | |
Cost of goods sold | 124,992 | 92,477 | 395,096 | 92,477 | 218,735 | |
Operating expenses | 144,164 | 124,138 | 467,315 | 124,138 | 252,513 | |
(Loss) income from operations | (104,421) | (76,668) | (344,737) | (76,668) | (190,801) | |
Total assets | 719,589 | 719,589 | 931,706 | |||
Hotel [Member] | ||||||
Product Information [Line Items] | ||||||
Total revenues, net | 169,724 | 163,102 | 623,661 | 163,102 | 378,798 | |
Operating expenses | 141,197 | 63,707 | 300,501 | 63,707 | 216,036 | |
Hotel operating costs | 404,322 | 320,305 | 1,334,041 | 320,305 | 744,594 | |
(Loss) income from operations | (375,795) | $ (220,910) | (1,010,881) | $ (220,910) | (581,832) | |
Total assets | 1,108,839 | 1,108,839 | 1,814,429 | |||
Manufacture And Sale [Member] | ||||||
Product Information [Line Items] | ||||||
Total assets | $ 2,872,820 | $ 2,872,820 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) shares | Sep. 30, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Product Information [Line Items] | ||||||||
Bad debt allowance | $ 483,346 | $ 483,346 | $ 213,787 | $ 148,520 | ||||
Asset impairment charges | $ 0 | 0 | ||||||
Property, plant and equipment, salvage value, percentage | 5% | 5% | 5% | 5% | 5% | |||
Impairment, long-lived asset, held-for-use | $ 0 | $ 0 | 0 | |||||
Uncertain tax positions | 0 | 0 | ||||||
Advertising revenue | $ 445,215 | $ 1,742,896 | 1,944,811 | 1,863,785 | ||||
Services advertisement revenue | $ 0 | $ 6,558 | ||||||
Vat of gross sales price percentage | 6% | |||||||
Potentially dilutive securities | shares | 0 | 0 | ||||||
Inventory valuation reserves | 19,641 | 19,641 | $ 0 | |||||
Impairment loss | 3,823,770 | 3,823,770 | ||||||
Maximum [Member] | ||||||||
Product Information [Line Items] | ||||||||
Cash FDIC insured amount | $ 72,500 | $ 72,500 | $ 72,500 | ¥ 500,000 | ¥ 500,000 | |||
Hotel [Member] | ||||||||
Product Information [Line Items] | ||||||||
Vat of gross sales price percentage | 6% | |||||||
Health Care [Member] | ||||||||
Product Information [Line Items] | ||||||||
Vat of gross sales price percentage | 0% | |||||||
Prior to May 1, 2018 [Member] | ||||||||
Product Information [Line Items] | ||||||||
Vat of gross sales price percentage | 13% |
SCHEDULE OF OTHER RECEIVABLES A
SCHEDULE OF OTHER RECEIVABLES AND PREPAID EXPENSES (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | |||
Deposits | $ 14,928 | $ 68,433 | $ 6,624 |
Prepaid expenses | 122,150 | 50,221 | 12,884 |
Employees’ social insurance | 10,584 | 13,839 | 7,562 |
Others | 14,978 | 10,788 | 5,253 |
Total | $ 162,640 | $ 143,281 | $ 32,323 |
ADVANCES TO SUPPLIERS (Details
ADVANCES TO SUPPLIERS (Details Narrative) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Advances To Suppliers | |||
Prepaid supplies | $ 137,362 | $ 162,969 | $ 155,686 |
SCHEDULE OF INVENTORIES (Detail
SCHEDULE OF INVENTORIES (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | |||
Raw material | $ 152,140 | ||
Work in process | 4,600 | ||
Finished goods-health supplements | 183,148 | 6,201 | $ 45,535 |
Drugs, pharmaceutical and nutritional products | 454,165 | 122,966 | |
Food and beverage, hotel supplies and consumables | 104,287 | ||
Total inventories, net | 857,754 | 233,454 | $ 45,535 |
Less: inventory allowance | 19,641 | ||
Food and beverage, hotel supplies and consumables | 83,342 | 104,287 | |
Total | $ 877,395 | $ 233,454 |
SCHEDULE OF PROPERTY AND EQUI_2
SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | |||
Total | $ 2,739,776 | $ 751,071 | $ 351,920 |
Less: Accumulated depreciation | (829,085) | (460,923) | (284,103) |
Property and equipment, net | 1,910,691 | 290,148 | 67,817 |
Vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | 413,857 | 295,502 | 288,604 |
Office Furniture [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | 80,039 | 64,263 | 48,464 |
Electronic Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | 19,980 | 22,304 | 14,852 |
Machinery [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | 1,104,495 | 106,080 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | 1,104,450 | 256,548 | |
Property, Plant and Equipment, Other Types [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total | $ 16,955 | $ 6,374 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||||||
Depreciation expense | $ 25,111 | $ 10,608 | $ 81,036 | $ 21,478 | $ 95,026 | $ 43,462 |
SCHEDULE OF INTANGIBLE ASSET (D
SCHEDULE OF INTANGIBLE ASSET (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Software | $ 8,479 | $ 7,896 | |
Less: Accumulated amortization | (7,086) | (5,956) | |
Intangible asset, net | $ 1,393 | $ 1,940 |
INTANGIBLE ASSET, NET (Details
INTANGIBLE ASSET, NET (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Amortization expense | $ 591 | $ 432 | $ 1,885 | $ 432 | $ 1,080 | $ 0 |
SCHEDULE OF TAX PAYABLE (Detail
SCHEDULE OF TAX PAYABLE (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Taxes payable | $ 55,942 | $ 232,637 | $ 283,495 |
Value-added [Member] | |||
Taxes payable | 12,979 | 97,917 | 32,318 |
Income [Member] | |||
Taxes payable | 29,979 | 109,396 | 235,300 |
City Construction [Member] | |||
Taxes payable | 1,760 | 7,018 | 2,422 |
Education [Member] | |||
Taxes payable | 1,479 | 5,064 | 1,781 |
Other [Member] | |||
Taxes payable | $ 9,745 | $ 13,242 | $ 11,674 |
SCHEDULE OF ACCRUED LIABILITIES
SCHEDULE OF ACCRUED LIABILITIES AND OTHER PAYABLES (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | |||
Accrued employees’ social insurance | $ 258,094 | $ 327,735 | $ 364,870 |
Accrued payroll and commission | 264,613 | 179,183 | 105,844 |
Accrued rent expense | 11,625 | 29,000 | |
Construction payable | 1,463,969 | 111,807 | |
Payable for equipment purchase | 20,051 | ||
Accrued professional fees | 206,427 | 50,840 | 16,927 |
Deposit | 11,668 | 12,239 | |
Other payables | 44,998 | 41,596 | 26,598 |
Acquisition payable (see Note 17) | 3,622,293 | ||
Total | $ 5,903,738 | $ 752,400 | $ 514,239 |
LOAN FROM THIRD PARTIES (Detail
LOAN FROM THIRD PARTIES (Details Narrative) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Loan From Third Parties | |||
Due to related parties | $ 84,347 | $ 94,153 | $ 0 |
LOAN TO THIRD PARTY (Details Na
LOAN TO THIRD PARTY (Details Narrative) | 12 Months Ended | |||
Jun. 08, 2020 USD ($) | Jun. 08, 2020 CNY (¥) | Dec. 31, 2020 USD ($) | Jun. 08, 2020 CNY (¥) | |
Loan To Third Party | ||||
Agree to lend loan | $ 7,408,389 | ¥ 50,300,000 | ||
Interest on loan lend | $ 10,718 | ¥ 74,000 | $ 535,906 |
SCHEDULE OF OPERATING LEASE LIA
SCHEDULE OF OPERATING LEASE LIABILITIES (Details) | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Mar. 31, 2019 USD ($) | Mar. 31, 2019 CNY (¥) |
Lease | |||||
Operating lease right-of-use assets | $ 1,173,616 | $ 2,049,775 | $ 100,029 | $ 207,049 | ¥ 1,389,731 |
Operating lease liabilities – current | 772,632 | 848,230 | 70,780 | ||
Operating lease liability – non-current | 382,152 | 1,138,710 | 29,250 | ||
Total operating lease liabilities | $ 1,154,784 | $ 1,986,940 | $ 100,030 | $ 207,049 | ¥ 1,389,731 |
SCHEDULE OF OPERATING LEASE EXP
SCHEDULE OF OPERATING LEASE EXPENSES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lease | ||||||
Operating lease expenses | $ 183,051 | $ 161,389 | $ 632,496 | $ 217,642 | $ 411,607 | $ 151,730 |
SCHEDULE OF OTHER INFORMATION R
SCHEDULE OF OTHER INFORMATION RELATED LEASES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2019 | |
Lease | |||||||
Operating cash flows from operating leases | $ 525,979 | $ 217,642 | $ 473,508 | $ 151,730 | |||
Weighted average operating lease term | 1 year 7 months 24 days | 2 years 5 months 1 day | 1 year 7 months 24 days | 2 years 5 months 1 day | 2 years 3 months 25 days | 1 year 4 months 13 days | |
Weighted average operating lease discount rate | 4.75% | 4.75% | 4.75% | 4.75% | 4.75% | 4.75% | 4.75% |
Operating lease expenses | $ 183,051 | $ 161,389 | $ 632,496 | $ 217,642 | $ 411,607 | $ 151,730 |
SCHEDULE OF MATURITIES OF LEASE
SCHEDULE OF MATURITIES OF LEASE LIABILITIES (Details) | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Mar. 31, 2019 USD ($) | Mar. 31, 2019 CNY (¥) |
Lease | |||||
2022 (excluding the nine months ended September 30, 2022) | $ 215,864 | ||||
2023 | 782,260 | $ 912,635 | |||
2024 | 123,488 | 959,650 | |||
2025 | 51,579 | 142,251 | |||
2026 | 21,751 | 52,176 | |||
2026 | 24,280 | ||||
Total lease payments | 1,194,942 | 2,090,992 | |||
Less: imputed interest | (40,158) | (104,052) | |||
Total lease liabilities | 1,154,784 | 1,986,940 | $ 100,030 | $ 207,049 | ¥ 1,389,731 |
Less: current portion | (772,632) | (848,230) | (70,780) | ||
Lease liabilities – non-current portion | $ 382,152 | $ 1,138,710 | $ 29,250 |
LEASE (Details Narrative)
LEASE (Details Narrative) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||||
May 31, 2014 | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 | Dec. 31, 2020 USD ($) | Mar. 31, 2019 USD ($) | Mar. 31, 2019 CNY (¥) | |
Lease term of contract | 3 years | 2 years | 2 years | ||||
Operating lease liability | $ 1,154,784 | $ 1,986,940 | $ 100,030 | $ 207,049 | ¥ 1,389,731 | ||
Operating lease right-of-use asset | $ 1,173,616 | $ 2,049,775 | $ 100,029 | $ 207,049 | ¥ 1,389,731 | ||
Operating lease discount percentage | 4.75% | 4.75% | 4.75% | 4.75% | 4.75% | 4.75% | |
Lease expiration date | May 28, 2023 | Mar. 31, 2021 | Mar. 31, 2021 | ||||
Aixin Shangyan Hotel Management [Member] | |||||||
Lease term | 1 year 3 months | 2 years | |||||
Minimum [Member] | |||||||
Lease term | 2 months 8 days | 6 months | |||||
Minimum [Member] | AiXintang Pharmacises [Member] | |||||||
Lease term | 7 months 13 days | 2 years | |||||
Maximum [Member] | |||||||
Lease term | 3 years 8 months 8 days | 5 years | |||||
Maximum [Member] | AiXintang Pharmacises [Member] | |||||||
Lease term | 3 years 11 months 1 day | 5 years |
SCHEDULE OF RELATED PARTY TRANS
SCHEDULE OF RELATED PARTY TRANSACTIONS (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | |||
Advance to related parties | $ 92,642 | $ 19,055 | $ 15,739 |
Advance from related parties | 726,650 | 1,947,154 | 264,850 |
Chengdu WenJiang Aixin Nanjiang Pharmacy Co., Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Advance to related parties | 13,240 | 4,583 | |
Qionglai Weide Pharmacy [Member] | |||
Related Party Transaction [Line Items] | |||
Advance to related parties | 10,421 | ||
Sichuan Aixin Investment Co., Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Advance to related parties | 142 | 4,237 | |
Chengdu Xindu Cundetang Pharmacy Co., Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Advance to related parties | 5,318 | ||
Chengdu Lisheng Huiren Tang Pharmacy Co., Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Advance to related parties | 11,788 | 10,235 | |
Quanzhong Lin [Member] | |||
Related Party Transaction [Line Items] | |||
Advance from related parties | 619,359 | 1,822,705 | 258,862 |
Yirong Shen [Member] | |||
Related Party Transaction [Line Items] | |||
Advance from related parties | 87,158 | 97,292 | |
Branch Manager [Member] | |||
Related Party Transaction [Line Items] | |||
Advance from related parties | 1,667 | ||
Chengdu Aixin E-Commerce Company Ltd. [Member] | |||
Related Party Transaction [Line Items] | |||
Advance from related parties | 13,777 | 15,378 | 3,240 |
Chengdu Aixin International travel service Co, Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Advance from related parties | 6,356 | 2,388 | |
Chengdu Beibang Pharmacy [Member] | |||
Related Party Transaction [Line Items] | |||
Advance from related parties | 2,748 | ||
Aixin Life Beauty [Member] | |||
Related Party Transaction [Line Items] | |||
Advance from related parties | 7,724 | ||
Chengdu Fuxiang Tang Pharmacy Co Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Advance to related parties | 27,250 | ||
Chengdu Wenjiang District Heneng Hupu Pharmacy Co Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Advance to related parties | $ 40,222 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
May 31, 2014 USD ($) | May 31, 2014 CNY (¥) | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Lease term | 3 years | 3 years | 2 years | 2 years | |
Monthly rent | $ 774 | ¥ 5,000 | |||
Lease expiry date | May 28, 2023 | May 28, 2023 | Mar. 31, 2021 | Mar. 31, 2021 | |
Future annual minimum lease payment | $ 6,056 | ||||
Accounts payable-related party | $ 160,911 | ||||
Renewed [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Monthly rent | $ 757 | ¥ 5,000 | |||
December 31, 2022 [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Future annual minimum lease payment | 9,300 | ||||
December 31, 2023 [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Future annual minimum lease payment | $ 3,875 |
SCHEDULE OF COMPONENTS OF THE P
SCHEDULE OF COMPONENTS OF THE PROVISION FOR INCOME TAXES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | ||||||
China | $ 292,891 | $ 340,127 | ||||
Total current | 292,891 | 340,127 | ||||
Deferred: | ||||||
China | (18,570) | |||||
Total deferred | $ 1,419 | (18,570) | ||||
Total income tax expense | $ (322) | $ 74,094 | $ 643 | $ 292,146 | $ 274,321 | $ 340,127 |
SCHEDULE OF DEFERRED TAX ASSETS
SCHEDULE OF DEFERRED TAX ASSETS (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2010 |
Income Tax Disclosure [Abstract] | ||
Accumulated amortization | $ 18,795 |
SCHEDULE OF EFFECTIVE INCOME TA
SCHEDULE OF EFFECTIVE INCOME TAX RATE (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal income tax rate | 21% | 21% | |
Foreign tax rate differential | 216.50% | 5.10% | |
Change in valuation allowances | 3,634.40% | 5.70% | |
Other (1) | [1] | (6.70%) | |
Effective combined tax rate | 3,871.90% | 25.10% | |
[1]Primarily consists of utilization of net operating losses in China |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | |||
Effective income tax rate continuing operations | 3,871.90% | 25.10% | |
Unrecognized tax benefits | $ 0 | $ 0 | |
Foreign Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Effective income tax rate continuing operations | 25% | 25% | |
Foreign Tax Authority [Member] | Aixin Shangyan Hotel and Aixintang Pharmacies [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carry-forward | $ 1,753,139 |
STOCKHOLDERS_ EQUITY (Details N
STOCKHOLDERS’ EQUITY (Details Narrative) $ / shares in Units, ¥ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Jul. 19, 2022 USD ($) | Aug. 17, 2020 | Oct. 24, 2019 USD ($) $ / shares shares | Oct. 22, 2019 USD ($) $ / shares shares | Sep. 30, 2022 USD ($) $ / shares shares | Sep. 30, 2021 USD ($) | Jun. 30, 2022 | Sep. 30, 2022 USD ($) $ / shares shares | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 USD ($) $ / shares shares | Jun. 30, 2020 shares | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||||||||
Preferred stock shares authorized | shares | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | |||||||||
Preferred stock,par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||
Common stock, shares authorized | shares | 500,000,000 | 500,000,000 | 500,000,000 | 500,000,000 | |||||||||
Common Stock, par value | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | $ 0.00001 | |||||||||
Common stock shares issued | shares | 49,999,891 | 49,999,891 | 49,999,891 | 49,999,891 | |||||||||
Common stock shares outstanding | shares | 49,999,891 | 49,999,891 | 49,999,891 | 49,999,891 | |||||||||
Share based compensation | $ 92,885 | $ 92,885 | $ 278,655 | $ 278,655 | $ 371,540 | $ 371,540 | |||||||
Unrecognized compensation expenses | $ 765,552 | $ 765,552 | $ 1,044,207 | ||||||||||
Employee services expected to be recognized | 3 years | 3 years | 3 years | ||||||||||
Forgiveness of shareholder's loan | $ 2,448,654 | $ 6,912,513 | |||||||||||
Business combination consideration | $ 4,301,293 | ||||||||||||
Stock split | one | ||||||||||||
Aixin Shangyan Hotel and Aixintang Pharmacies [Member] | |||||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||||||||
Business combination consideration | 4,500,000 | ¥ 29 | |||||||||||
Decrease in additional paid-in capital | 4,313,025 | ||||||||||||
Quanzhong Lin [Member] | |||||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||||||||
Forgiveness of shareholder's loan | $ 6,912,513 | ||||||||||||
Quanzhong Lin [Member] | |||||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||||||||
Common stock shares outstanding | shares | 35,049,685 | ||||||||||||
Employees and Contractors [Member] | 2019 Equity Incentive Plan [Member] | |||||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||||||||||||
Issuance of shares | shares | 550,000 | 37,500 | |||||||||||
Issuance of value | $ 1,520,200 | $ 337,500 | |||||||||||
Price per share | $ / shares | $ 2.764 | $ 9 | |||||||||||
Vesting period | 5 years | 5 years | 5 years | ||||||||||
Share-based compensation arrangement by share-based payment award, description | the grantee will forfeit 80% of Shares Granted if no longer employed by or contracted with the Company on the date that is one year from the grant date, forfeit 60% of Shares Granted if no longer employed by or contracted with the Company on the date that is two years from the grant date, forfeit 40% of Shares Granted if no longer employed by or contracted with the Company on the date that is three years from the grant date, and forfeit 20% of Shares Granted if no longer employed by or contracted with the Company on the date that is four years from the grant date. Effective on the 5th year from the grant date, none of the shares will be subject to forfeiture. | the grantee will forfeit 80% of Shares Granted if no longer employed by or contracted with the Company on the date that is one year from the grant date, forfeit 60% of Shares Granted if no longer employed by or contracted with the Company on the date that is two years from the grant date, forfeit 40% of Shares Granted if no longer employed by or contracted with the Company on the date that is three years from the grant date, and forfeit 20% of Shares Granted if no longer employed by or contracted with the Company on the date that is four years from the grant date. Effective on the 5th year from the grant date, none of the shares will be subject to forfeiture. | the grantee will forfeit 80% of Shares Granted if no longer employed by or contracted with the Company on the date that is one year from the grant date, forfeit 60% of Shares Granted if no longer employed by or contracted with the Company on the date that is two years from the grant date, forfeit 40% of Shares Granted if no longer employed by or contracted with the Company on the date that is three years from the grant date, and forfeit 20% of Shares Granted if no longer employed by or contracted with the Company on the date that is four years from the grant date. Effective on the 5th year from the grant date, none of the shares will be subject to forfeiture. |
STATUTORY RESERVES (Details Nar
STATUTORY RESERVES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net income transfer, rate | 10% | 10% | |||
Capital reserve, rate | 50% | 50% | |||
Statutory reserve fund | $ 0 | $ 0 | $ 0 | $ 140,267 | |
Minimum [Member] | |||||
Net income transfer, rate | 5% | 5% | |||
Capital reserve, rate | 25% | 25% | |||
Maximum [Member] | |||||
Net income transfer, rate | 10% | 10% |
OPERATING CONTINGENCIES (Detail
OPERATING CONTINGENCIES (Details Narrative) - 1 months ended Dec. 31, 2020 | USD ($) | CNY (¥) |
Guarantor Obligations [Line Items] | ||
Litigation Settlement, Expense | $ 392,305 | ¥ 2,500,000 |
Indemnification Agreement [Member] | ||
Guarantor Obligations [Line Items] | ||
Long-Term Purchase Commitment, Amount | $ 392,305 | ¥ 2,500,000 |
SCHEDULE OF BUSINESS ACQUISITIO
SCHEDULE OF BUSINESS ACQUISITION PRO FORMA (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Aixin Shangyan Hotel Management [Member] | ||||
Revenue | $ 4,241,991 | $ 4,789,633 | ||
Operating costs and expenses | 5,244,272 | 4,949,947 | ||
Loss from operations | (1,002,281) | (160,314) | ||
Other income | 100,026 | 643,458 | ||
Income tax expense | 274,321 | 340,155 | ||
Net loss | $ (1,176,576) | $ 142,989 | ||
Runcangsheng Aixin Shangyan Hotel And Aixintang Pharmacies [Member] | ||||
Revenue | $ 1,854,617 | $ 3,869,889 | ||
Operating costs and expenses | 3,826,342 | 4,240,635 | ||
Loss from operations | (1,971,725) | (370,746) | ||
Other income | 25,313 | 82,950 | ||
Income tax expense | 643 | 292,146 | ||
Net loss | $ (1,947,055) | $ (579,942) |
ACQUISITIONS OF SUBSIDIARIES (D
ACQUISITIONS OF SUBSIDIARIES (Details Narrative) | 9 Months Ended | 12 Months Ended | |||||||||
Jul. 19, 2022 USD ($) | Jun. 02, 2021 USD ($) | Jun. 02, 2021 CNY (¥) | May 25, 2021 USD ($) | May 25, 2021 CNY (¥) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 USD ($) | Dec. 31, 2020 CNY (¥) | |
Business Acquisition [Line Items] | |||||||||||
Aggregate purchase price | $ 4,301,293 | ||||||||||
Payment for acquisition | $ 4,497,972 | ||||||||||
Aixin Shangyan Hotel Management [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Aggregate purchase price | $ 1,160,000 | ¥ 7,598,887 | $ 1,160,000 | ¥ 7,598,887 | |||||||
AiXintang Pharmacises [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Aggregate purchase price | $ 5,310,000 | ¥ 34,635,845 | $ 5,310,000 | $ 5,310,000 | ¥ 34,635,845 | ||||||
Ownership percentage | 100% | 100% | 100% | 100% | |||||||
Business combination consideration transferred | $ 116,802 | ||||||||||
Runcangsheng [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Aggregate purchase price | $ 4,418,095 | ¥ 31,557,820 | |||||||||
Payment for acquisition | 679,000 | ||||||||||
Accrued liabilities and other payable | $ 3,622,293 |
SCHEDULE OF FAIR VALUES OF THE
SCHEDULE OF FAIR VALUES OF THE ASSETS ACQUIRED AND LIABILITIES ASSUMED (Details) - USD ($) | Jul. 19, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Subsequent Events [Abstract] | |||
Business combination, consideration transferred | $ 4,301,293 | ||
Estimated fair value of assets acquired: | |||
Cash | 446,381 | ||
Accounts receivable | 144,813 | ||
Accounts receivable-related party | 133,011 | ||
Advance to suppliers | 3,455 | ||
Other receivables and prepaid expense | 127,909 | ||
Inventory | 469,594 | ||
Property and equipment | 1,677,272 | ||
Intangible assets | 1,406 | ||
Operating lease right-of-use assets | 1,990 | ||
Total assets acquired | 3,005,831 | ||
Estimated fair value of liabilities assumed: | |||
Accounts payable | (89,801) | ||
Accounts payable-related party | (160,911) | ||
Advance from customers | (4,790) | ||
Government grant | (921,473) | ||
Taxes payable | (21,156) | ||
Operating lease liability | (15,182) | ||
Accrued liabilities and other payables | (1,314,995) | ||
Total liabilities assumed | (2,528,308) | ||
Total net assets acquired | 477,523 | ||
Goodwill as a result of the acquisition | $ 3,823,770 |